Independent Agency Alerts – May 2020 Edition

Welcome to the May edition of STG’s Independent Insurance Agency Sales Alerts publication. On behalf of our agents and brokers, we would like to bring your attention to an intriguing potential opportunity created by the very M&A plateau that has given some traders pause. Despite the temporary nature of the pandemic, the challenges it has created are real, and the resulting effects on the market deserve examination.

If you are fortunate enough to be considering expanding your portfolio, we recommend doing as some forward-thinking investors have—use this time to aggressively track down agencies that are ideal purchase targets now.

Buyers, if you plan to incorporate our SBA loan package into your financing, you should know that the FED has already agreed to pay 6 months of your loan outright—but only for a limited time. This unprecedented incentive will equip you to position your bid for consideration immediately. Buyers, we humbly request that you reach out to us at your earliest convenience. Pleases take advantage of this massive incentive while you can.

Despite the slight slowing in the market, the acquisitions arena remains competitive. In order to cultivate an adequate influx of healthy prospects, we must employ a deft mix of tactics along with rapid, reflexive thinking. We view this process as a joint endeavor that covers multiple levels simultaneously, creating a multistrand ouroboros of sorts. In concert with our principled, national approach, STG provides a connected, “boots-on-the-ground” intelligence at the local level that we release only to you, our buyers.

In order that you should have the best opportunity to close the deal on your prospective agency, we also grant our buyers access to STG’s proprietary seller broker administration, research tools for both our internal and external databases, and access to 90% of the market—agencies the public never sees because they are rapidly purchased by connected buyers.

The agencies below are a few of the independents located by our researchers or provided to us directly over the last 30 days. Please do contact us if you’re interested in access to our listings from April, as well as our last off-cycle listing.

SHOP A: South East: This MGA has a reputation for carrying only high-quality insurance products. With products in health, dental, and ancillary lines through Georgia, Florida, and Tennessee, this agency presents a rare, unique opportunity. This healthy business is running remotely at present and has one employee who is working part-time from home.
Reported Revenue: $221,000. Asking Price: $442,000. Tracking Code: DFLPH

SHOP B: Texas: Located west of San Antonio, TX, this carveout offers the buyer the option to run the business remotely or continue operations at the current offices. This location does not receive walk-in traffic and has no employees. Carriers include Dairyland, State Auto, Progressive, and Germania. The portfolios are split 75% commercial and 25% personal lines.
Reported Revenue: $78,000. Asking Price: $235,000. Tracking Code: STXHK

SHOP C: Florida: Offering Health Insurance throughout the state, including Medicare, this Florida Health Agency is currently available. This full-service Health Agency focuses on individual and Medicare products. This exciting opportunity will not last long; be advised, only those who act swiftly will have the opportunity to have their bids considered.
Reported Revenue: $620,000. Asking Price: 2.25X.  Tracking Code: DFLBK

Your association with the STG team will give you ongoing access to the strongest array of financial tools and M&A opportunities available in North America today. Our clients are located throughout North America, South America, the Bahamas, Africa, and Europe. Please email for further details regarding one of the agencies listed in today’s alert.