Today we share with you STG’s October 2020 Independent Insurance Agency Sales Alert. As always, we’d like to give a nod to our in-house research and outreach groups, as well as our SEO program managers. They bring us invaluable potential opportunities by ever-so-diligently keeping their ears to the ground and honing in on finding buying opportunities for our interested buyers. Our teams are also assisted by our professional network of industry consultants and attorneys. Also, when a deal goes bad, it’s often due to broken financing. STG knows about broken deals immediately, and we have the financing practice behind us to ensure that our buyers always have access to lenders who work specifically in the insurance space.
Through our research in the past 30 days, we’ve uncovered some great independent agency listings! Below is JUST A SAMPLE of the listings we have just learned about. For a complete list of agencies for sale all across the US please reach out to STG.
READ BELOW FOR MORE INDUSTRY INFO AFTER CHECKING OUT THESE AGENCIES:
SHOP A – Texas: This strong, well-established, independent, and mixed practice insurance operation that was started from scratch three decades ago is now available for sale. Sales focus for the agency is 85% personal P&C lines and 15% health. Carrier Appointments include Safeco, ASI, Progressive, Foremost, Ambetter, Molina, United Healthcare and more.
Reported Revenue: $1.25MM / Asking Price: 2X of Revenue / Tracking Code: DTXRY
SHOP B – Indiana: An independent agency that specializes in life and health coverage is now available for purchase. This five-year-old agency specializes in Medicare Supplemental and Advantage, group and individual health insurance and ACA. Carriers include United Healthcare, Mutual of Omaha, Aetna (Silver Scripts), Manhattan Life, and more.
Reported Revenue: $100K / Asking Price: 2X of Revenue / Tracking Code: DINTW
SHOP D – Texas: A strong and well established independent P&C operation is now available for sale in the Lone Star State. Sales focus for the agency is auto and home. There are currently four employees plus the owners. Carrier Appointments include Aspen Insurance, Infinity Insurance, American Access, ACCC Insurance, Gainsco Insurance and more.
Reported Revenue: $500K / EBITDA: $280K / Asking Price: 4X of EBITDA / Tracking Code: STXAP
Although we recognize that the US economy is enduring one of the most difficult challenges in recent history, we’re still seeing insurance industry growth. Why is there an increased national need for insurance coverage? Beneficial legislation and record low interest rates have encouraged an exorbitant number of people to either buy their first home or move somewhere new during the coronavirus pandemic. The average consumer in the United States now owns more assets that need to be insured, and this is especially true as millennials take the leap into home ownership.
The M&A market for insurance agencies continues to push upward with the strengthening of multiples, strong activity, and an excellent financial arbitrage by buying, combining, and reselling agencies. The seller’s market for independent agencies is still going strong and Private Equity continues to be a driver of that strength, with nearly 80% of the larger (over $5MM) reported transactions coming from Private Equity-backed firms.
When you join forces with STG you’re guaranteed 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. Email Service@SpringtreeGroup.com for more information on the agencies listed in today’s alert, or for a complete listing of all available agencies that are looking for the right buyer!
