Welcome to our August installment of the STG Insurance Agency Sales Alert publication. Consumer confidence in the independent insurance agency market is still prevalent, indicating that the strong M&A activity we’ve experienced in recent years will continue.
Agency valuations are trending upward, primarily due to heavy pressure from an influx of well-funded bidders entering the market. The effect of these strong Private Equity players and National parties arriving and snapping up successful agencies, especially when added to the existing pressure from attractive interest rates and positive multiple arbitrage, has been an overall increase in the asking price for the majority of agencies.
We are able to present you with a pipeline of opportunities thanks to our ever-growing network of sell side intermediaries, our dependable market research group, and insider information about broken financing deals. We supplement this pipeline with activity from our network of consultants, CPAs, bankers, attorneys, PEGs, DOIs, and direct contact from motivated sellers. Our broad network means STG provides you with immediate access to a huge slice of the available opportunities in the insurance space.
The new August listings below are a sample of the independents our network has discovered in the last 30 days. Upon request, we provide our clients with access to all available listings from off-cycle listings and prior monthly listings.
SHOP B: Palm Springs, California: Thriving 15-year-old P&C insurance and auto/registration tag business. The agency provides a wide range of products, including personal and commercial home, business, auto, life, and health insurance. Has established direct appointments with Kemper, Infinity, Safeco, Dairyland, and many more. The business breakdown is 30% standard lines, 70% non-standard lines.
Reported Revenue $750K / Asking Price $2.25MM. Tracking Code: DCADM
SHOP G: South Texas: This well-established agency is independent, locally-owned, multigenerational, and available now. The practice is full-service, focusing mainly on L&H with a lesser P&C component. Established 1977, there are four employees today, including the owner and spouse. Primary markets include Progressive, Blue Cross Blue Shield, Humana, Aetna Texas All Risk, and Myron Steves.
Reported Revenue $275K / Asking price $500K. Tracking Code DTXJS
SHOP H: Chicago, Illinois: This profitable, stable agency was established 1982. The organization insures commercial recreation establishments, e.g. camping resorts and mobile home communities, serving policy holders in in Il, WI, IN, AZ and PA. On the personal lines side of the portfolio, they insure travel trailers, motor homes and mobile homes, park models, motorcycles, boats, auto, and homes.
Reported Revenue $106K / Asking Price 2.25X of revenue. Tracking Code DILCB
Your association with STG provides you with valuable access to the strongest assemblage of M&A and financial tools, as well as continued support for your acquisition, perpetuation, and operational needs anywhere in the United States. We’re proud to serve our clients in North America, South America, Europe, and the Bahamas. Please contact us directly for additional information on services and opportunities. Reach out to us via email at: Service@SpringtreeGroup.com. Visit us online for additional information on services and opportunities.