Welcome to your May edition of the STG Insurance Agent and Broker Sales Alerts. National M&A activity so far this year is trending higher than average when compared over the last five years. The seller’s market for independent agencies continues to be prevalent, with an ongoing neutral market in the captive arena.

The Private Equity money continues to pour into the insurance arena, while the banks have shown a sustained pull back from the space, a trend that started in 2005. Primarily because of the Private Equity positioning in the M&A marketplace, the acquisition values have never been higher.

In this difficult acquisition marketplace, the most effective tactic in deal origination is 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 Registered Buyer has access. STG provides Registered Buyers additional tools to access the 90% of the sellers that are not openly and publicly communicating their intention to sell.

The listings below are a small sample of some of the new independent agencies for sale discovered through our research group or provided directly to us during the last 30 days. Upon request, we will provide our Registered Buyers access to previous month’s and off cycle listings.

SHOP B: Nevada — A 13-year-old independent insurance agency focused on selling health, dental, vision, disability, workers compensation and supplemental type products with recurring revenue is now available for sale. Asking Price $225K / Reported Revenue $185K.

SHOP C: Florida — An established independent commercial P&C insurance agency is now for sale. This is a specialty agency serving a commercial niche. Policies in 11 states – FL, GA, SC, NC, TN, OH, KY, MS, AL, MO, IL. Asking Price $197K / Reported Revenue $109K.

SHOP D: North Texas — An established independent health and employee benefits book of business is now for sale. A great bolt on for those shops wanting to add an employee benefit division to support cross selling. Asking Price $530K / Reported Revenue $353K.

SHOP E: Oregon — An established 16-year-old independent P&C insurance agency is for sale. This shop is focused on trucking and commercial insurance throughout the US. Primary insurance markets include Hartford, Travelers and Safeco. Asking Price $2MM / Reported Revenue $965K.

Additional opportunities exist in Massachusetts, South Florida, Arkansas, New York, and other parts of the country. For more information about our M&A, agency lending tools and financial services available to support your acquisition, perpetuation and operational needs, please call (972) 395-8811 or contact us online.