Welcome to the March edition of the STG Insurance Agency Sales Alerts. The M&A market activity in the segments of our focus is above average for this time of year. In our observation the seller’s market for insurance agencies continues and is expected to part of our lives for some time. There has not been a significant jump in asking multiples but they are trending slightly higher.
The insurance agency 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 B: South Florida — A well-established independent P&C insurance agency is now for sale. A mix of considerable commercial (including marine coverages) along with personal lines. Asking Price $849K / Reported Revenue $338K.
SHOP E: Missouri — An established seven year old independent insurance agency is now for sale. The book is comprised of 75% preferred personal lines and 25% small commercial with good loss ratios and “A” rated carriers. Asking Price $450K / Reported Revenue $232K (Includes fees).
SHOP F: Central Valley California — Thirty year old independent insurance agency is for sale. This company is focused on preferred personal and commercial Lines. Asking Price $295K / Reported Revenue $165K. Will consider some seller paper.
SHOP J: Arizona — A thirty year old independent P&C insurance agency for sale. Insurance business, with 50% preferred, plus annuities. Asking Price $75K / Reported Annual Revenue $125K / Reported Annual Premium $3.6MM.
In our experience, the most effective tactic for deal origination continues to be a multi-level and joint endeavor, combining STG’s national approach with local market intelligence to which only the client has access. STG provides clients additional tools to help access the 90% of the sellers that are not openly and publicly communicating their intention to sell.
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 972-395-8811 or contact us online for additional information on services and opportunities.