Independent Insurance Agency Sales Alert – September 2019 Edition

If you’re looking for an insurance agency to purchase this year, our September Sales Alert deserves your full attention. Middle market buyers are finding excellent buying opportunities through the STG network; primarily motivated by the potential for:

  • Gaining critical mass to support expenses, contingencies, and commission structures
  • Stepping into new geographic markets and gaining new insurance markets
  • Opportunities to backfill inherent growth gaps
  • Improving efficiency of operations/specialty resources

We are convinced that the most effective means of developing acquisitions involve a multi-level approach. Optimize your rate of development by employing the national platform that STG provides combined with the hard-won local market data that only the client possesses. Springtree Group presents our buyers with results refined through repeated testing of our deal origination tools. Our goal is to reach the 90% of agencies that have not yet openly stated their intention to sell.

We have multiple sources of fresh information, including our in-house research team, the still-burgeoning group of more than 5,000 sell side intermediaries, and opportunities that have become available thanks to broken financing deals that have been exposed directly by our financing division.

We supplement this robust activity with opportunities reported by our network of attorneys, consultants, CPAs, DIOs, PEGs, and bankers. Thanks to this well-rounded and extensive network, STG provides buyers with the broadest possible insight into new purchasing opportunities emerging in the insurance space.

The following listings are a sample of a few of the agencies we’ve gathered in the last 30 days. Upon request, we provide buyers access to our full list of for sale agencies, including our most recent off-cycle listings from the most recent month.

Shop A: Central Texas This well-established family owned agency is located East of Waco. Situated along a main street, this agency writes P&C business.They specialize in the farm and ranch business, with primary carriers including Allied, Texas Mutual, Hochiem Prairie, and National Lloyds. Split 30% standard, 70% non-standard lines. Currently supports two full-time employees and 1 part-time employee.
Reported Revenue $360K / Asking Price $600K. Tracking Code: DTXBR

SHOP C: Philadelphia Metro This newer agency was established five years ago and has rapidly grown to more than $7MM WAP. Their primary focus is group and individual health insurance. Recently they have begun offering P&C. Markets include Blue Cross Blue Shield, Liberty Mutual, Progressive, All Risk, Commonwealth, Philadelphia, and Safeco. The split is 50% Personal, 50% Commercial lines. There are currently four employees.
Reported Revenue $523K / Asking Price 2.5X of Revenue. Tracking Code DPAEG

SHOP F: Palm Springs, California This agency is 15 years old, specializing in P&C insurance and auto registration tags. Offering a robust spectrum of products: from P&C for auto, business, home, to health and life insurance, they have secured direct appointments with Kemper, Safeco, Dairyland, Infinity, and many more. The business is divided 30% standard, 70% non-standard.
Reported Revenue $2.25MM / Asking Price $750K. Tracking Code: DCADM

Springtree Group also supports a very large in-house financing practice. Should you require financing, we highly recommend relying on our trusted lenders. We will integrate your M&A project into the financing process. Your cost remains the same, you will have less work to complete, and your chance of making a successful purchase is significantly increased. Botched financing is the number-one deal killer, so having your bid supported by strong financials is crucial to your success.

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 and the Bahamas. Please email for more information on the agencies listed in today’s Alert and to obtain access to our complete list.