Welcome to your June 2015 edition of the STG Insurance Agent and Broker Sales Alerts publication. National M&A activity so far this year is trending higher at mid-year with strong closing activity shown by the national companies. Marsh, Assured Partners, Hub, Alliant, Willis, Gallagher and Confe all closing significant deals in the current quarter. The seller’s market for independent agencies continues to be prevalent with an ongoing buyer’s to neutral market in the captive arena.
Access to sellers can be difficult, because the open exposure of the owners desire to sell can be a concern due to the impact this information could have on insurance carriers (markets), employees, clients and the competition. Most analytics/consulting firms in this space report that only 10% of all insurance agency deals are publicly known.
Our biggest source for potential opportunities for you come through our ever-growing group of more than 5,000 sell side intermediaries, broken financing deals and our research activities. This pipeline is supplemented by our network of consultants, attorneys, CPAs, bankers, DOIs, VC firms, PEGs and Strategic Partners. STG provides you with the broadest insight available into new buying opportunities in the insurance space.
The listings below are a sample of some of the new independents discovered through our research or provided to us during the last 30 days. Upon request we will provide our Registered Buyer clients’ access to previous month’s and off cycle listings.
SHOP A: Alabama — An established, 38-year -old, preferred independent P&C agency is now for sale. This is all P&C with a 60% commercial vs. 40% personal split. No cross selling has taken place on this book. The primary insurance markets offered include: Hartford and others. Asking Price $1.1MM / Reported Revenue $650K / $5MM WAP.
SHOP D: Arizona — An established preferred independent personal and commercial lines insurance agency is now for sale. The book is 85% personal lines and 15% commercial lines. Seller has some direct appointments but also writes through a cluster. Asking Price $750K / Reported Revenue $380K.
SHOP G: Colorado — An established independent employee benefits agency is for sale central Colorado. The book is dominated (95%) by health insurance accounts. This would be an ideal book to bolt onto a P&C shop to provide cross selling opportunities. Asking Price $520K / Reported Revenue $260K.
SHOP K: Western Florida — An established independent Employee Benefits Agency is now for sale. The book is made up of 75% health insurance of which 10% are group clients and 25% life insurance clients. An ideal situation for a firm wanting to gain a foothold in the employee benefits space. Asking Price $100K / Reported Revenue $40K.
Additional opportunities are available this month in Virginia, Kentucky, Texas, Central Florida, Southern Illinois, and other parts of the country. Being associated with STG provides you access to the strongest array of M&A, agency lending tools and financial services available to support your acquisition, perpetuation and operational needs in any part of North America. Please call (972) 395-8811 or contact us online for additional information on services and opportunities.