In our April edition of Insurance Agency Sales Alerts, we have three incredible opportunities as our sample listings. We continue to be excited by the strength of the Insurance M&A activity as we finish the first quarter of 2021. Although it is still a strong seller’s market, we are happy to report that in general, buyers are being wise with their purchases. That means that there are quite a number of overvalued agencies still waiting for buyers. We anticipate sellers will take note of the general sensibilities of buyers, leading to reduced asking prices in the near future.
Overall, the P&C insurance market writing capacity is strong – bolstered by plentiful new capital that continues to flow into the insurance marketplace. The P&C market is showing signs of hardening – but only in select geographic markets and sectors. Most Property and Casualty insurers are enjoying a surplus fueled by the robust economic picture; they are seeing growth in net written premiums as well as expanding levels of alternative capital.
IMPORTANT: THE LISTINGS BELOW ARE ONLY A SMALL SAMPLE that we have been approved to share publicly. Our complete list is only accessible to our Registered Buyers. Contact us here to become a Springtree Group Buyer (IT’S FREE) and get access to ALL OF THE AGENCIES FOR SALE that we have information about. This month’s sample listings:
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SHOP A: New Jersey. A 40-year-old preferred lines, full-service agency located in the state of New Jersey is now for sale. This book is 80% personal and 20% commercial lines business. The primary carriers include Plymouth Rock, Progressive, Mercury, Foremost, Next, UPC and more! The agency has no employees and utilizes the EZ Lynx management system. Reported Revenue $165K / Asking Price: 2.2X of Revenue / Tracking Code: SNJMS.
SHOP B: California. A pure property and casualty book buy with no expenses is now available for purchase in California. The markets are a mix of admitted markets for work comp, auto, and GL as well as a number of E&S markets including AIX Specialty, Lloyd’s, Continental Casualty, INFINITY SELECT, Security National, Associated Industries Insurance and many more. Reported Revenue: $227K / Asking Price: 2.35X of Revenue / Tracking Code: SCAMS.
SHOP E: Arizona. An Arizona based independent full-service agency that has been doing business since 1956 is now for sale. This agency has a great location with great signage off a main highway in Northern Arizona. The agency has a focus on Personal Lines and holds direct contracts with Travelers, Foremost, Safeco, MetLife, Progressive and many more! 75% standard lines. Reported Revenue: $195K / Asking Price: 2.5X of Revenue / Tracking Code: DAZBT
If you need help with financing, we highly recommend utilizing our lenders. We will integrate the M&A project together with your financing. It costs you no more, is less work for you and is significantly more successful. REMEMBER: Botched financing is the number one reason deals fail.
ALL INTERESTED BUYERS: If you are agreeable to SBA products, the new Federal Stimulus program beginning on February 1, 2021 and lasting until the end of September 2021, will provide payment of your Principal and Interest (up to $9000 a month) for 3 months while waiving the guarantee fee which is usually approximately 2% of the loan amount.
Please email Service@SpringtreeGroup.com for more information on the agencies listed in today’s Alert and to receive our complete list of agencies for sale.
