Independent Insurance Agency Sales Alert – June 2020

Now that we are approaching this year’s halfway point, we have been able to examine the M&A activity 2020 has seen thus far. We are pleased to report that in the insurance industry, mergers and acquisitions have continued with hardly a misstep. Because other market sectors have taken heavy financial losses during this difficult year and the financial landscape may not recover in the near future, informed buyers and sellers have been contemplating which moves will best position them for success.

Once through the pandemic, the lending world will almost certainly be more competitive. Thanks to the FED, expect financing to be competitive. Springtree Group buyers, however, needn’t worry; our SBA 7a loan package will make you eligible to snag the FED’s offer to pay 6 months of payments for SBA consumers.

Make no mistake: this is a once-in-a-lifetime incentive, and as such, this bargain will only be offered to buyers who are prepared to get a deal into the pipeline ASAP. If you are one of our buyers, we respectfully request that you contact us without delay. We urge you to take advantage of this windfall before the opportunity has vanished.

Your connection with STG guarantees that you will be continually plugged in to our extensive network of consultants, CPAs, DOIs, PEGs, loan underwriters, Strategic Partners, and attorneys. In addition to this incredible network of knowledgeable professionals, you’ll be served by our research team, ensuring that you’ll be matched with opportunities that are tailored to your needs.

Springtree Group is first to know when an agency is listed for sale, often before they’ve been officially listed. Below, we’re showcasing three such agencies that will move quickly. Should one of these listings catch your interest, contact us today.

 SHOP D: Eastern Pennsylvania: This independent agency, over 6 years old, is now for sale: over $7MM WAP. Focused on group and individual health insurance, and now offering P&C and life insurance options. Health policies are this agency’s strength. The P&C are divided, 50% personal and 50% commercial lines. Currently there are four full-time members of staff. Markets include Progressive, Safeco, BC/BS, Liberty Mutual, Commonwealth, Philadelphia, and All Risk.
Reported Revenue: $498K / Asking Price: 2.5X of Revenue. Tracking Code: DPAEG.

SHOP F: South East: This MGA provides health, dental, and ancillary lines in Georgia, Tennessee, and Florida, and is now for sale. Carriers include National General, Allied National, Kansas City Life, and many more! This singular opportunity is already operating remotely and has 1 part-time employee who telecommutes from home.
Reported Revenue: $221K / Asking Price: 2X of Revenue. Tracking Code: DFLPH

SHOP H: Colorado. This auto insurance book was built organically in Colorado. The book of business was established 2 years ago, and is now divided 50% standard, 50% non-standard lines. Carriers include Progressive, Safeco, Travelers, and many more! The agency’s management system is EZlynx and has around 572 PIF.
Reported Revenue: $140K / Asking Price: 1.88X of Revenue. Tracking Code: SCOGT

Valued buyers, you’re no doubt hyper-aware that botched financing tanks more deals than any other pitfall. If you’re seeking financial backing, we highly recommend working with our in-house lenders, who will seamlessly integrate your M&A project and financing. While the cost to you remains the same, your workload will be greatly reduced, and your odds of success will be significantly greater.

Being associated with STG provides you access to the strongest array of M&A and financial tools and services available to support your acquisition, perpetuation, and operational needs in any part of North America. Please email for more information on the agencies listed in today’s Alert.