National M&A activity is trending above the averages established over the last five years as it relates to total number of deals traded for independent insurance agencies. There was a noticeable shift, however, in the size of agencies being acquired versus the comparable periods. YTD, only a quarter of the agencies acquired had revenue greater than $5 million. This figure is approximately half of what is was in 2016.
Private Equity money continues to pour into the insurance space. Primarily because of this significant PE activity in the insurance M&A marketplace, acquisition values are at all time highs.
In this competitive acquisition market, it takes a concentrated mix of tactics and quick reflexes to develop adequate deal flow. We view this process as a multi-level and joint endeavor. A principled national approach that Springtree Group (STG) provides, in concert with the “boots on the ground” local market intelligence only accessible to buyers, is a good starting point. To this mix, STG adds robust search tools, including seller broker administration, outbound telemarketing programs, internal and external research functions, and other proprietary systems, in the effort to reach the 90 percent of the market that is hidden from public involvement.
The listings below are a sample of some of the new independents discovered through our research during the last 30 days:
SHOP A: Central Alabama – An independently owned and locally operated insurance agency is now for sale. This agency has been providing home, auto, life and commercial insurance for 20 years. Currently they hold direct appointments with Safeco, The Hartford, Travelers, Auto Owners and many more! Asking Price $800K / Reported Revenue $400K.
SHOP B: Austin, Texas – A rare independent insurance agency with a focus in personal auto and home insurance is now available for sale. This is a solid agency doing around $1.4MM in premium with the country’s top major carriers including Safeco, Travelers, Mercury, State Auto and Encompass. Majority of the business in located in the Austin and Houston metro areas. This agency can easily be folded into your current agency or run remotely. Asking Price $300K / Reported Revenue $156K.
SHOP C: Los Angeles, California – A long standing independent insurance agency established in 1986 based in Los Angeles, California. This agency is a member of PIA, IBA West, and works with more than 100 different companies to provide clients with coverage. The agency is made up of 75% Commercial lines vs. 25% personal lines. Asking Price $1.5MM / Reported Revenue $800K.
Other opportunities exist from coast to coast, and the full month’s listings are available to Registered Buyers. Upon request, we will provide our Registered Buyers access to previous month’s and off cycle listings, as well. Being associated with STG provides you access to the strongest array of insurance related 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 for additional information on services and opportunities.