As we’ve reached the halfway point of 2019, it’s time to take a look back over the M&A activity since the year’s start. The numbers show that independent insurance agency sales, mergers and acquisitions are competing with the hectic industry activity we saw in 2017 and 2018. This is a good thing!

Why is there so much M&A activity in the insurance space right now?

Several factors are at work: the PEG (Private Equity Group) sector has boosted demand, baby boomers are reaching retirement age and transitioning out of insurance, and there is an increase in financing options available to potential buyers.

The market is hot for interested buyers, but the seller’s market is also extremely favorable due the interest from the PEG sector. The captive arena presents as continually neutral as well.

Even with a favorable market, working with an intermediary helps buyers and sellers find each other when they would otherwise meet roadblocks that could stall transition events. Springtree Group’s extensive opportunity pipelines come from our network of attorneys, consultants, CPAs, loan underwriters, DOIs, PEGs, Strategic Partners and an ever-expanding pool of 5,000+ sell-side intermediary relationships. Additionally, our in-house research team works tirelessly to present our registered buyers with the right opportunities. We’re the first to know when an agency is listed; we often know before they’re officially on the market.

The listings in today’s Sales Alert post are a small fraction of the agencies we have information about. We are happy to provide Registered Buyers with access to our full list of agencies for sale at any time.

This month’s highlighted agencies for sale include:

SHOP C: Southwestern Oregon – This well-established, 28-year-old P & C agency presents a solid opportunity in the Northwestern US. Product offerings include personal lines, home & auto, and multipurpose commercial P&C Insurance. Commercial lines: 45%; personal lines: 55%. Top markets include Foremost, Safeco, Allied, Progressive and more. Reported Revenue $205K / Asking Price $420K. Tracking Code: DORRD

SHOP D: Austin, Texas – Here we have a Medicare supplement, life and annuity book serviced out of Central Texas currently available for sale. This is a book sell only and offers the added convenience of remote operation. Fantastic work-from-home opportunity! Carriers include Aetna, Cigna, Mutual of Omaha. Agency has been writing business since 1985 and has extremely loyal policy holders. Reported Revenue $26K / Asking Price 1.75X of revenue. Tracking Code: ACTXTN

SHOP F: DFW Metroplex –  With a recent PRICE REDUCTION, this solid personal lines shop has a fantastic location in the middle of the Dallas / Fort Worth metropolitan area. The agency has one full time Producer and two part time CSRs. Markets include: Progressive, Kemper, Infinity, Falcon and others. The book is 30% Standard / 70% Non-Standard. Reported Revenue $168K (includes $23K in fees) / Asking Price 1.64X of revenue. Tracking Code: STXRV

For more details about any of the agencies herein, or to learn about independent insurance agency sales listings in Colorado, Oklahoma, Texas, Arizona, Alaska, Florida, California and across the country, simply send us an email at Service@SpringtreeGroup.com. We look forward to matching you with an insurance agency that meets all of your requirements and fits comfortably into your budget.

Need financing for your agency acquisition? Ask us about our long list of nationally recognized lending partners who can customize a loan package that allows you to utilize equity, commissions or hard assets as collateral.
independent insurance agency sales