Independent Agency Sales Alerts – August 2014 Edition

Welcome to your August edition of the STG Independent Agency Sales Alerts. Current national M&A activity has begun to trend upward as we move into the second half of the year. The seller’s market for independent agencies continues to be prevalent.

Overall agency valuations are improving as the economy continues to recover. As reported in past Sales Alerts, there is an increasing number of well-funded bidders in the market. There has also been a substantial increase in Private Equity interest in purchasing successful agencies, which is driving up prices for the larger agencies.

This month’s listings include agencies in North Carolina, Florida, Georgia, Illinios, Michigan, Nevada, Texas, Louisiana, Wisconsin, Washington State, and other parts of the country. The listings below are a sample of some of the new 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: Far Eastern North Carolina — An established independent P&C agency is now for sale. This agency provides coverage for vehicles, homeowners, property and casualty, and commercial customers. The growth of this agency is primarily from walk-ins and referrals. Asking Price $150K / Reported Cash Flow $52K.

SHOP C: Northern Illinois — A seven-year-old independent personal lines P&C agency for sale. Major insurance markets include Progressive, Travelers, CAN Surety, KAI, Founders, American Alliance and others. Agency owns the store front office which is for sale separately. Asking Price $350K / Reported Revenue $405K.

SHOP F: Michigan — An eight-year-old independent Health Insurance book of business for sale. Mostly individual policy holders with all business done over the phone and internet. Operates in the states of MI, TX, FL, NC and SC. Asking Price $80K / Reported Revenues $80K / 350 PIF.

SHOP I: Northern Louisiana — An established independent 100% personal lines P&C insurance agency is now up for sale. Major direct insurance markets include Safeco, Progressive, Foremost, Bristol West, ASI and Bankers. This Company can be considered a stand-alone agency opportunity or would be highly compatible as a “bolt-on” to another agency. Asking Price $40K / Reported Revenue $24K.

Clients of the Springtree Group enjoy 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 972-395-8811 or contact us online for additional information on services and opportunities.