Welcome to our October 2019 Independent Agency Sales Alert. Each month, we gather potential investment opportunities from both our in-house research group and directly from sellers. Additionally, we supplement our main information pipeline with leads from our extensive network of:
- Industry consultants
- Sell-side business brokers
- Lending underwriters
- Unsuccessful financing attempts
STG continually communicates with this broad information base to bring you the newest, most financially stable buying opportunities in the independent insurance space.
When compared to the economy of just a decade ago, the average consumer in the USA now owns significantly more assets that should be insured. And, now that millennials are making the leap into home ownership, we can expect to see this trend gain momentum.
With the strengthening of multiples and a steady bustle of activity, the M&A market for insurance agencies has continued to burgeon. The seller’s market is also prevalent, and we are able to report a firming trend in the Captive shops market over the past two quarters. Private Equity remains a strong driver of this market’s success; in review, nearly 80% of the largest transactions reported have emerged from PE-backed agencies.
Below, we’ve listed three prime investment opportunities either uncovered through our network or provided to us directly over the past 30 days. Our clients may contact us directly and request full access to last month’s listings and our off-cycle agency listings.
SHOP B: California. This independent insurance agency is located in Northern CA. Notably robust, this business has grown every year since its opening in 2012. A 90% standard lines P&C, this agency writes policies with Safeco, Kemper, Travelers, Allied, Progressive, and more. Because this agency uses the EZ Lynx management system and preserves impeccable loss ratios, it is a prime opportunity for an owner looking for an agency that can easily be run remotely.
Reported Revenue $130K / Asking Price $200K. Tracking Code: DCADG
SHOP C: Mississippi: This well-established agency is twenty years old. Specializing in home and auto business, it is split 40% commercial and 60% personal. Every member of staff is licensed by the Mississippi State DOI and is an expert in auto insurance. There are two full-time and 1 part-time members of staff, all of whom are willing to remain on staff post-acquisition. This agency offers policies from Progressive, MetLife, The Hartford, and Travelers. The agency management system is QQ Catalyst.
Total Revenue $200K / Asking Price $300K. Tracking Code: DMSLP
SHOP E: Texas: Located in the Texas Panhandle, this well-established agency boasts an enviable roster of both new and repeat clientele. First established in 1964, this agency was then sold in 2015. This transition was smooth, and the agency continued to grow. Clients may choose policies from Kemper, Progressive, Foremost, Germania, and more!
Reported revenue $396K / Asking Price $1.177MM. Tracking Code: ATXCD
In order to best serve our customers, STG has a large, in-house financing practice. If you require assistance securing financing, speak to our lenders. We will integrate your financing into your M&A process. STG will not increase your cost, but we will lighten your workload, and can guarantee you a much greater chance of locking down successful financing.
Botched financing is the most common reason otherwise solid deals fall through. Optimize your success by working directly with STG.
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. Please email Service@SpringtreeGroup.com for more information on the agencies listed in today’s Alert, or to gain access to our complete list.