Organic growth of your insurance agency is definitely possible, but the potential for growth via acquisitions can mean a growth explosion. Buyers are excited about the opportunities in the insurance industry that continue to abound because they know the value in agency acquisition as a growth strategy. Some of the main motivations for purchasing another agency include:
- Gaining “critical mass,” which leads to bigger commissions and bonuses;
- Expansion into additional geographic regions and new markets;
- Filling gaps found in their growth plan;
- Improved utilization of resources leading to better operating efficiency.
IMPORTANT: THIS LIST IS ONLY A SMALL SAMPLE OF AGENCIES FOR SALE. Our complete list is only accessible to our Registered Buyers. Contact us here to become an STG Buyer (IT’S FREE) and get access to ALL OF THE AGENCIES FOR SALE that we have information about. This month’s sample listings:
SHOP N: California This agency is a full-service independent that is located in the California Valley. Started from scratch in 2009, they pride themselves in being a full-service agency for any insurance need. The agency currently has 1 full time employee and holds direct appointments with Progressive, Travelers, Kemper and many more.
Reported Revenue: $170K ($35K Fees) / Asking Price: 2.25X of Commission Revenue and 1X Fee Revenue / Tracking Code: DCAEG.
SHOP P: Rocky Mountains An independent agency that specializes in the trucking, oil, and gas business, this agency was started three decades ago and has a strong presence in the commercial lines industry. Operating in Wyoming, Colorado, Utah, Texas, Oregon, Nebraska and more, their current split of business is 90% commercial lines / 10% personal lines. Carriers include Safeco, Nationwide, Progressive, Grange, Foremost and more.
Reported Revenue: $350K / Asking Price: 2.5X of revenue / Tracking Code: DWYBS.
SHOP Q: Texas This strong, well-established, independent P&C operation is now available for sale. Sales focus for the agency is Auto & Home. With four employees plus the owners, they have carrier appointments with Aspen Insurance, Infinity Insurance, American Access, ACCC Insurance, Gainsco Insurance and more.
Reported Revenue: $500K / EBITDA: $280K / Asking Price: $1.2MM / Tracking Code: STXAP.
A huge percentage of insurance agencies for sale never get publicly announced due to confidentiality requirements. Potential buyers and agency owners who want to grow via acquisition can get frustrated when there appear to be very few agencies that are actually available for purchase. WHEN YOU WORK WITH SPRINGTREE, YOU’RE THE FIRST TO KNOW WHEN AN AGENCY BECOMES AVAILABLE FOR ACQUISITION.
If growth through acquisition is part of your 2021 business plan, it’s in your best interest to begin the process ASAP. While agency acquisition is a surefire way to speedily boost your business, the due diligence required on both ends means an acquisition can take months. Keep in mind that the current limitations imposed on us due to the pandemic means that every transaction takes a bit longer than under “normal” circumstances.
Pandemic or not: THE INSURANCE INDUSTRY IS BOOMING!
Remember: This post includes only three of the MANY agencies that we have information about. To learn more about listings in Alaska, Georgia, Indiana, Kentucky, Texas (multiple listings), New York, California (multiple listings), Florida, Arizona and more, reach out to us via email at Sam@SpringtreeGroup.com.