As we move through the last full month of summer, we’re happy to share that the independent agencies seller’s market continues to be dominant. This is due to the steady rise in consumer and market confidence in the insurance space as the economy continues to strengthen.
Agency valuations are increasing mostly because there are such a solid number of well-funded buyers who are in the market. These bidders include many national players who are buying successful agencies as well as interest from private equity. Interested buyers are putting the pressure on, driving up asking prices around the country. Along with buyer demand, historically advantageous interest rates and positive multiple arbitrage have led to increased M&A activity in the insurance sector.
Our sources for potential opportunities for you come through our ever-growing group of sell side intermediaries, broken financing deals and our market research group. This pipeline is supplemented by our network of consultants, attorneys, CPA’s, bankers, DOI’s, PEGs and direct contact by sellers. STG provides you with the broadest insight available into new buying opportunities in the insurance space.
Below, we’ve included a sample of newly listed independent agencies for sale, as discovered by our research group and professional network. If you are interested in a complete list of agencies, please reach out to STG.
SHOP A Florida: This independent property and casualty insurance agency is now for sale. This company has been servicing a niche group of clients for over a decade. This agency is 33% Commercial and 67% Personal lines. Major carriers include: Foremost, Progressive, Standard, Tower Hill, Dairyland and many more.
Reported Revenue: $887K / Asking Price: $2.5MM. Tracking Code: AFLFC.
SHOP B Florida: Here we have a successful independent insurance agency that was started in 2016 by combining decades of insurance, risk management, and business ownership and experience between the principals. The agency has a focus on providing insurance services relating to real estate. The seller will be happy to provide real estate referrals to the new owners. 25% Commercial / 75% Personal Lines. Carriers include: Southern Oak, Burns & Wilcox, Progressive, Bankers, and many more.
Reported Revenue: $100K / Asking Price: 2X of revenue. Tracking Code: SFLCL.
SHOP D: Michigan: This unique agency specializes in adult foster care, assisted living and home health coverage and has been doing business since 1968. The agency has 3 full time employees and 1 part-time bookkeeper. Carriers include: Progressive, Fremont Mutual, Lloyds, Dairyland and many more.
Reported Revenue: $280K / Asking Price: 2.5X. Tracking Code: DMIDH.
Springtree Group also has a large financing practice. If you need financing, we highly recommend utilizing our lenders. We will integrate the M&A project with the financing. It costs you no more, is less work for you and is significantly more successful. Botched financing is the number one reason deals fail.
Being associated with STG provides you access to the strongest array of M&A and financial tools and services available to support your acquisition, perpetuation, and operational needs in any part of North America. Proudly serving customers in North America, South America, Europe, Africa, and the Bahamas. Please email Service@SpringtreeGroup.com for more information on the agencies listed in today’s Alert.