Now that we have more than six months of 2020 M&A activity for our analytic team to review, they happily report that COVID-19 hasn’t depleted insurance sales, mergers, and other agency transition events. Admittedly, the pandemic has introduced some challenges into the sales process, but virtual site visits and a few other creative tweaks have ensured that activity in our niche industry is still going strong.
It’s hard to miss the fact that the pandemic has indeed severely affected some industries, so why is the insurance space still reporting strong and steady activity? The PEG sector’s continuous high demand is due to their strong fundamentals. Additionally, Baby Boomers in the industry are hitting retirement age and saying “I want to sell my insurance agency!” – leaving many awesome opportunities for younger people who are looking to buy.
The first half of this very challenging year has given us good news about buying or selling in the insurance industry. We must caution you, however, that the challenges introduced by the pandemic mean that buying or selling an insurance agency should be done with the help of a business intermediary. Ideally, your intermediary will be well-versed in insurance. Attempts to transition into or out of insurance at this time on your own could very well end in a stalled or even cancelled event.
Here at Springtree Group, we spend a large portion of our time looking for insurance agencies that are for sale (or about to be listed). We have a huge network that allows us to have a jump on the information you need as a buyer or a seller. The need for confidentiality when selling an insurance agency is something we understand completely, and we only share our full list of agencies with our registered buyers.
We saved the best news for last. All buyers using our SBA 7(a) loan packages can take advantage of the FED’s offer to pay six months of your payments!
Because of this incredible opportunity, if you’re interested in buying an insurance agency in the near future, please reach out to us at your earliest convenience so you don’t miss out on this offer. The deadline to apply for the FED’s offer is 9/30/20.
Here are a few of the new independent insurance agencies for sale:
SHOP A: North Rocky Mountain Region: This is an independent agency that specializes in the trucking, oil, and gas business. The agency was started three decades ago and has a strong presence in the commercial lines business. Operating in Wyoming, Colorado, Utah, Texas, Oregon, Nebraska and more, their current split of business is 90% commercial lines and 10% personal lines. Carriers include Safeco, Nationwide, Progressive, Grange, Foremost and more.
Reported Revenue: $385K / Asking Price: 2.5X of revenue. Tracking Code: DWYBS.
SHOP B: Central Texas: A full-service agency located in Houston, Texas, this agency was established in 2013 and has a mix of P&C, health and medicare advantage/supplement business. Their primary carriers include Progressive, UPC, Aetna and BC/BS. The two staff members who have been with the agency for over a year would like to stay on with the new buyer.
Reported Revenue: $420K / Asking Price: 2.5X . Tracking Code: DTXSL
SHOP C: Southern California: An established very stable full-service independent agency is now available for sale. Product offerings include P&C with a strong focus on farm and ranch insurance. The agency has been doing business since 1980 and consists of 60% preferred and 40% non-standard lines. Top markets include Foremost, Dairyland, and many more.
Reported Revenue: $171K / Asking Price: 1.71X. Tracking Code: DCAJA.
Please email Service@SpringtreeGroup.com for more information on the agencies listed in today’s alert.