Insurance Agencies Sales Alert – March 2018

Welcome to the March edition of the STG Insurance Agent Sales Alerts. The M&A market activity in the segments of our focus is above average for this time of year. In our observation, the seller’s market for insurance agencies continues and is expected to part of our lives for some time. Asking multiples in the last 12 months have been trending higher for independents, with a number of requested sales prices in the 3X range.

The listings below are a sample of new leads for independent insurance agencies for sale developed by our staff, discovered through our research, or provided directly to us during the last 30 days. In our view and experience, the most effective tactics in deal origination continues to be a multi-level and joint endeavor, using the national approach that STG provides in concert with the “boots on the ground” local market intelligence that only the client has access to. STG provides clients many additional tools to help access the 90% of the sellers that are not openly and publicly communicating their intention to sell. Upon request, we will provide our Registered Buyer clients access to previous month’s and off cycle listings.

Shop A: Houston, Texas – A strong and well-established auto, home and commercial insurance agency operating in over 25 states nationwide is now for sale. The agency is 100% virtual and has no walk-in traffic. This agency is a full coverage agency with a primary focus in commercial garage business. The agency owner is willing to stay on as a producer if desired. Reported revenue $233K / Asking price $450K.

Shop C: Reno, Nevada – A well-established 40-year-old independent Life and Health insurance agency is now for sale. Long standing Medicare supplement and Health agency located outside of Reno, NV. The agency has no employees and can easily be folded into your current agency. Carriers include Anthem, Humana, Transamerica and more. This also has a small amount of P&C business with Progressive and Foremost. Asking Price $500K / Reported Revenue $300K.

Shop G: San Jose, California – This agency is located on a busy corner in the highly desired city of San Jose, CA. This agency is a full-service agency with a book of loyal clients. The owner prides himself on building the business from the ground up and continues to maintain a high retention rate. Markets include Mapfre, Safeco, Progressive, Stillwater and Nationwide. Asking Price $300K / Reported Revenue $130K.

Additional opportunities exist across the U.S., including independent insurance agencies for sale in Maryland, Michigan and Nevada. Being associated with STG provides you access to the strongest array of insurance related M&A services, agency lending tools and financial services available to support your acquisition, perpetuation and operational needs in any part of North America. We are proud to serve clients in North America, Europe, Bermuda and South America. Please call (972) 395-8811 or use our online contact form for additional information on services and opportunities.