Welcome to the September edition of your Springtree Group Insurance Agent Sales Alerts. Middle market buyers continue to be enthused about buying opportunities because of four critical motivations:

  1. To gain critical mass
  2. Enter a new market area
  3. Back fill organic growth gaps
  4. Better utilize operating efficiency / specialty resources

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. Our source for potential opportunities for you come through our ever-growing group of more than 5,000 sell-side intermediaries, broken financing deals, and our research activities. This pipeline is supplemented by our network of consultants, attorneys, CPAs, bankers, DOIs, PEGs and direct contact by sellers. STG provides you with the broadest insight available into new buying opportunities in the insurance space. Clients receive access to the full listings and may also request the previous month’s and off cycle listings.

SHOP A: West Central Florida — A well-established, 27-year-old independent P&C general agency is for sale. The shop has underwriting agreements with nearly 40 triple “A” companies. Very desirable, highly visible office location. Asking Price $350K / Reported Revenue $140K.

SHOP E: Central Texas — A very well established and highly profitable standard “commercial program” P&C insurance agency is for sale. Significant markets include Allied, Travelers, Chubb, Nationwide, Zurich. This agency was listed a year ago and is back on the market. Asking Price $1.150MM / Reported Revenue $660K.

SHOP G: South Carolina — This is a small independent property and casualty insurance agency. The company represents carriers including Progressive, Dairyland, Gainsco, Assurance America, CIS Insurance, Access Insurance, Everest and Titan. Majority of book is homeowners with some auto. This would be considered a good buy to gain appointments. Asking Price $39.5K / Reported Revenue $36.5K.

SHOP L: Southern New York — A 28-year-old independent health insurance agency for sale. The book is comprised of major long-term endorsements with sole proprietors and small groups. The owner is retiring. NY metro based business. Asking Price $1.5MM / Revenue $875K.

In our view, the most effective tactics in acquisition target development include a multi-level and joint endeavor, using the national approach that STG provides in concert with the “boots on the ground” local market intelligence to which only the client has access. STG provides clients a number of additional tools to access the 90% of the sellers that are not openly and publicly communicating their intention to sell.

As a client of Springtree Group, you have access to the strongest array of agency loan programs, M&A and financial consulting services available to support your acquisition, perpetuation and operational needs in any part of the country. Please call 972-395-8811 or contact us online for additional information on services and opportunities.