Independent Insurance Agencies for Sale – April 2014

Welcome to the April edition of the STG Insurance Agent and Broker Sales Alerts, listing independent insurance agencies for sale nationwide. The M&A market activity in the segments of our focus has shown strength as we finished the first quarter. The seller’s market continues; however, we have seen mounting evidence that buyers are being very rational with their purchases and overvalued agencies are setting in the market wanting for buyers.

The hard P&C market continues to be with us and we anticipate it to endure for the foreseeable future. The healthcare market is softening from previous levels; however, the biggest note is the lack of the feared collapse of the small employee benefits agency sector as a consequence of the ACA that some were predicting.

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. Upon request we will provide our clients access to previous month’s and off cycle listings.

SHOP A: Central Texas — A multi-location independent Non Standard P&C insurance agency is for sale. This operation has been on the market previously but with considerable growth, has now come back on the market. Asking Price $1.2MM / Reported Revenue $800K (Includes Fees).

SHOP D: South Georgia — A 13-year-old independent health insurance book of business. A strong Web presence featuring an individual and family quoting engine. Considerable opportunity as a result of the impact of the ACA health reform. Asking Price $295K / Reported Revenue $121K.

SHOP H: Maryland — An 11-year-old independent supplemental insurance agency for sale. Products include Short and Long Term Disability, Cancer and Critical Illness, Accident, Hospitalization, Life, Medicare Supplement. Great opportunity to round out a traditional agency’s product lines. Reported Revenues $275K / Asking Price $450K.

SHOP K: Southern California — A 12-year-old mixed practice independent insurance agency. Top Markets include Castle Point, York, Blue Cross Blue Shield, Travelers, Markel, and State Fund Direct. Book by product type: Work Comp 44%, Group Health 17%, General Liability 13%, Commercial Auto, 12%, Personal Lines, 3%. Asking Price $699K / Reported Revenue $249K / Cash Flow $220K.

Springtree Group clients enjoy 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. If you are looking for independent insurance agencies for sale or would like assistance with other financing needs, please call 972-395-8811 or contact us online for additional information on services and opportunities.