Welcome to the first edition of the Insurance Agent Sales Alerts for 2017, and congratulations to those of you that contributed to the record-breaking insurance agency M&A activity last year!
As 2016 drifts into the rear view mirror, the memory of potential buyers contacting STG in November and December wanting to close a deal “before the end of the year” was noteworthy. We unfortunately needed to advise clients that, in most cases, there simply is not enough time to professionally complete a process that is so complex unless the deal was intended to be all cash. The lesson for STG is to advise buyers to begin the sales process as early as possible.
The development work for most transactions typically takes a few months from inception to closing. If buying an insurance agency is in your business plan for 2017, we recommend that you seriously consider starting the procurement process now to complete your acquisition during this calendar year.
The listings below are samples of some of the new or repriced independent insurance agencies for sale discovered through our research or provided to us during the last 30 days. Our clients receive the full list each month, and upon request, we will provide clients access to previous month’s and off cycle listings.
SHOP B: Denver, Colorado – This well-established independent P&C agency is now on the market. The focus is on Home and Auto Insurance. This book is 80% Preferred. The agency has been doing business since 2008 and has had steady growth year after year. Direct Carriers include Progressive, Safeco, Travelers, Foremost and others. Asking Price $240K / Estimated Annual Revenue $120K.
SHOP E: Mesa, Arizona – An established 10-year-old independent P&C agency is now available for sale. The shop is in a modern and attractive metropolitan shopping plaza. The book is primarily P&C – Home and Auto. The commercial vs personal lines ratio is 30% / 70% with mostly standard lines. Both Spanish and English are spoken. Carriers include; Progressive, Infinity, Hathaway and others. Asking 1.75X / Reported Revenue $150K.
SHOP F: West Texas – A 50-year-old standard lines independent agency is now for sale! Located between the metro areas of Lubbock and Amarillo. This shop is currently run remotely. Great long term local employee. Direct appointments with Safeco, Allstate, Blue Cross, GuideOne and many others. Asking Price $275K (includes a Building) / Reported Revenue $93K.
Being associated with STG provides you access to the strongest array of insurance related M&A services, agency lending tools and financial services available to support your acquisition, perpetuation and operational needs in any part of North America. For additional information on services and opportunities, please call (972) 395-8811 or contact us online.
