Welcome to the November edition of your Insurance Agent Sales Alerts. Our sources for potential opportunities for you come through our in-house research group, custom built outbound telemarketing programs, and direct contact by and to sellers. This pipeline is supplemented by our large network of sell-side business brokers, industry consultants, attorneys, our lending underwriters and broken financing deals. STG provides you with the broadest insight available into new buying opportunities in the insurance space.
Current national agency M&A activity continues to trend upward as we finish out the second half of the year, with the seller’s market for independent agencies continuing. Overall agency valuations have also improved throughout the year. There are an increasing number of well-funded bidders in the market, including the increase in Private Equity interest. Private equity activity alone is up 10% from a very robust 2014. Both of these drivers are pushing up multiples for quality agencies.
The listings below are a sample of some of the new independents discovered through our research during the last 30 days. Upon request, we will provide Registered Buyers access to previous month’s and off cycle listings.
SHOP A: Arlington, Texas – PRICED TO SELL – A five-year young independent P&C agency is for sale. Situated in a very visible location with high traffic, a growing community with consistent current clients and still growing. Has excellent growth potential with established clientele and cross-selling of commercial, life, and health insurance. Seller is willing to carry some paper. Asking Price $115K / Reported Revenue $85K.
SHOP B: South East Texas – A solid standard independent agency located in Hardin/Jefferson County, Texas. Agency has been in operation for over 35 years. Steady revenue and very low expenses. 25% commercial. Asking Price $400K / Reported Revenue $201K.
SHOP C: Southlake, Texas – An established independent agency, licensed in Texas, Oklahoma, Arkansas, Kansas and Louisiana – Relocatable – All Standard lines and 100% commercial. Owner is willing to stay on as a producer and will carry some paper. Asking price $800K / Reported Revenue $400K.
SHOP E: Tarrant County, Texas – JUST LISTED – A 17-year-old independent agency in the very desirable Arlington, Texas area. This agency has a full offering of insurance products, and has a specialty in the commercial trucking insurance. Major markets include Travelers, Hartford, Foremost and more. A building is available if wanted. Agency only Asking Price $1.6MM / Reported Revenue $800K.
Being associated with STG provides you access to the strongest array of M&A, agency lending tools and financial services available to support your acquisition, perpetuation and operational needs in any part of North America. Please call us at (972) 395-8811 or contact us online for additional information on services and opportunities.