As we were preparing this month’s Insurance Agency Sales Alert publication, we took note that our middle market buyers are currently motivated to make a purchase by one or more of the following factors:
- The need to leverage expenses, commission structures and contingencies
- Aspirations to enter new geographic locations where they can gain new insurance markets
- A desire to back fill organic growth gaps
- To make better use of operating efficiencies and/or specialty resources
The most effective acquisition target development strategy will be a multi-level endeavor, using the tried and true approach that we provide combined with the local market intelligence provided by the client. When you work with Springtree Group as your business intermediary, you will have access to all of our deal origination tools. It’s always our goal to reach the 90% of agency sellers that are not openly announcing their upcoming sale.
If you’re in the middle market insurance space, rest assured that STG provides buyers with the broadest insight available into new buying opportunities. Along with our in-house research team, our deal sources include a constantly growing group of 5,000+ sell side intermediaries and broken financing deals that are now available – most often exposed by the Springtree Group financing division. This activity is supplemented by our network of consultants, attorneys, CPAs, bankers, DOI’s, and PEGs, as well as direct contact by sellers themselves.
The three shops included below are merely a sample of the newly listed independent agencies discovered by our research and networking teams. For a complete list of agencies for sale all across the US please reach out to STG.
SHOP A – Virginia: An independent full-service agency that was started from scratch, this agency has a great location with beautiful signage. This agency does a mix of personal and commercial lines business and has direct contracts with Travelers, Foremost, Allstate (Independent), Auto Owners, Progressive and many more. The mix of business is 80% standard / 20% non-standard lines.
Reported Revenue: $225K / Asking Price: 2.4X of Revenue. Tracking Code: DVARR
SHOP B – Texas: This well-established, multiple location, non-standard, independent P&C insurance agency has a big presence in South-Central Texas and specializes in auto insurance and tax preparation. Markets include: ACCC Gen Agency, American Access, United Auto, Aggressive, Hallmark, Texas All Risk, Newport and American SW. The agency has 13 employees and utilizes the Agency Matrix management system.
Reported Revenue: $1MM / Asking Price: 2X of Revenue. Tracking Code: ATXAR
SHOP C – Texas: This strong, well-established, and independent P&C operation in now available for sale. The agency’s sales focus is auto and home. There are 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.
NOTE: 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 statistically results in a more successful purchase. Botched financing is the number one reason for failed transactions.
When you want access to the best M&A and financial tools and services available to support your acquisition, perpetuation, and operational needs, you want Springtree Group as your business intermediary. Please email Service@SpringtreeGroup.com for more information on the agencies listed in this or last month’s sales alert.