Welcome to the March 2017 edition of the STG Insurance Agent Sales Alerts. The M&A market activity in the segments of our focus is average for this time of year. In our observation, the seller’s market for insurance agencies continues and is expected to endure for some time. Asking multiples in the last 12 months have been trending higher.

In our view and experience, the most effective tactics in deal origination continues to be a multi-level and joint endeavor, using the national approach that STG provides in concert with the “boots on the ground” local market intelligence that only the client has access to. STG provides clients a number of additional tools to help access the 90% of the sellers that are not openly and publicly communicating their intention to sell.

The listings below are a sample of some of the new independent leads developed by our staff, discovered through our research or provided to us during the last 30 days. Upon request, we will provide our Registered Buyer clients access to previous month’s and off cycle listings.

SHOP A: Chandler, Arizona – A well-established six-year-old independent specialty P&C operation is now for sale. This agency participates in the highly lucrative and growing technology device insurance space. The company is licensed in all 50 states. There are 10 employees. This is not a traditional insurance agency operation. Asking price $720K / Reported $1.569 MM.

SHOP C: Denton, Texas – A solid, well established 35-year-old agency independent agency. The location is very desirable and has new growth surrounding the agency. The agency specializes in non-standard home and auto business and has two employees. All direct carrier appointments including Safeway, Kemper, Mendota and Mercury. Asking Price $499K (with Building) $299K (without the building) / Reported Revenue $180K.

SHOP G: Knoxville, Tennessee – A deep rooted 30-year-old independent non-standard P&C agency is now for sale. This agency specializes in home and auto insurance, primarily personal lines business. All appointments are direct and include General, Progressive, Dairyland, Viking among others. Asking Price $250K (includes the office building) / Reported Revenue $120K.

Other opportunities exist nationwide, from Missouri to Colorado, and these listings are made available to our Registered Buyer clients. 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. Please call us at (972) 395-8811 or contact us online for additional information on services and opportunities.