Independent Agency Sales Alert – October 2016

We are pleased to present this excerpt from the October 2016 edition of the Independent Agency Sales Alert publication, which is made available exclusively to Springtree Group Registered Buyers. Our sources for potential opportunities come through our in-house research group, custom built out-bound telemarketing programs and direct contact by 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.

The M&A market for insurance agencies continues to push upward with the strengthening of multiples and strong activity. The seller’s market for independent agencies is still prevalent and we have also noted a firming trend in the market for Captive shops in the last six months. Private Equity continues to be a strong driver of the strength, with nearly 80% of the larger reported transactions coming from PE-backed firms.

The listings below are some of the independents discovered through our research or provided to us during the last 30 days. Upon request we will provide our clients access to previous month’s and off cycle listings.

SHOP A: Missouri – Highly profitable standard lines independent P&C agency is now available for sale. This firm in located in Missouri. Access to the seller is through invitation only. This deal is being sold on a competitive EBITDA market multiple. No seller paper or hold backs. Complete and detailed financials will be made available. Highly skilled team is in place that desires to stay. The owner is absentee. Agencies like this don’t come around very often so act Fast! Asking Price $1.5MM.

SHOP B: Houston, Texas – An established independent P&C agency in west Houston, Texas. This agency has been doing home and auto business for 25+ years. Direct contracts with carriers including Progressive, Mercury and United Fairplan. WAP $630K / Asking Price $125,000 / Reported Revenue $63,000.

SHOP C: San Antonio, Texas – A 22-year-old independent general lines agency is now available in San Antonio, Texas. This agency is made up of 80% personal and 20% commercial business. Carriers include State Auto, Wellington, ACCC and others. Ideal location with great signage. Great for cross-selling opportunities. This agency is priced well below market so don’t let this opportunity pass you by. Asking Price $160K / Reported Revenue $142K.

Being associated with STG provides you access to the strongest array of insurance M&A services, agency lending tools and financial services available to support your acquisition, perpetuation and operational needs in any part of North America. Please call (972) 395-8811 or contact us online to learn more about current independent agencies for sale, or for additional information on the services and opportunities we provide.