Independent Insurance Agency Sales Alert – November 2020

Welcome, Springtree Group Buyers, to the November 2020 Independent Agency Sales Alert. At least once per month, we present select investment opportunities sourced both directly from sellers and our in-house researchers. Additionally, we include leads from our extensive network of:

  • Lending underwriters
  • Attorneys
  • Industry-leading consultants
  • Sell-side consultants
  • Unsuccessful attempts at financing



SHOP A: Arizona. This independent agency specializes in health insurance coverage from Medicare, Group health, and standard employee benefits. Having served the market for over two decades, it boasts a wide range of carriers, including Aetna, Blue Cross/Blue Shield, Humana, Cigna, United Healthcare, and more.
Reported Revenue: $250K / Asking Price: 2.5X of Revenue / Tracking Code: DAZCC

SHOP C Texas. This book of Annuity clients throughout Texas presents a unique opportunity to expand your existing Life & Annuity business. With a total book of premiums totaling around $48m, the seller will be able to show tax returns supporting an income of $500k over the last 5 years. American Equity is the largest carrier, but the book of business also includes F&G, Athene, and North American.
Reported Income: $500K / Asking Price: $300K / Tracking Code CTXCM

SHOP H: Texas. This full-service agency is in Houston, Texas. Established in 2013, this agency holds a mix of P&C, Medicare Advantage, Health, and Supplement business. Its primary carriers include UPC, Progressive, Aetna, and Blue Cross/Blue Shield. The agency employs two staff members; having been with the agency for more than a year, they would prefer to stay on with the new buyer.
Reported Revenue: $420K / Asking Price 2.5X / Tracking Code: DTXSL

In service of our Buyers, Springtree Group remains in perpetual communication with the entirety of our research base. We continually deliver sound buying opportunities in our niche area: the middle market independent insurance space.

When viewed in the context of even a decade’s time, today’s average US consumer owns significantly more assets that can only be secured by insurance. As millennials continue to become home owners, we can reasonably expect this trend to continue gaining momentum.

As multiples strengthen and activity bustles steadily, the M&A market for private insurance agencies has concurrently burgeoned, even in the context of the ongoing pandemic. This market continues to be driven by private equity, with nearly 70% of the largest transactions reportedly emerging from PE-backed agencies.

Certainly, there were fewer insurance M&A transactions overall in insurance distribution pre-pandemic, BUT activity remains high overall. We may feasibly see activity reaching, or even exceeding, 2019’s high water mark before 2020 draws to a close. Overall, the high-level view of extensive insurance M&A activities should remain; thus, buyers will continue competing to acquire the most desirable targets. Savvy buyers have remained fixed on their goal to capture market share and scale up their holdings.

We also have 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 for more information on the agencies listed in today’s Alert.