Welcome to the September edition of the STG Insurance Agent Sales Alerts. As we close out the third quarter of 2015, middle market buyers continue to be enthused about buying opportunities, primarily because of four critical motivations:

  • Gaining critical mass to leverage expenses, commission structures and contingencies
  • Entering new geographic market areas and to gain new insurance markets
  • Back filling organic growth gaps
  • Better utilization of operating efficiencies / specialty resources

In our view, the most effective tactics in acquisition target development include a multi-level and joint endeavor, using Springtree Group’s national approach in concert with the local market intelligence to which only the client has access. STG provides our Registered Buyers a number of tested high quality deal origination tools. The goal is to reach the 90 percent of agency sellers that are not openly and publicly communicating their intention to sell.

Our deal sources include our research team, our out-bound telemarketing group, the ever growing group of over 5,000 sell-side intermediaries, and broken financing deals exposed to us through STG’s financing division. This activity is supplemented by our network of consultants, attorneys, CPAs, bankers, DOIs, PEGs, and significant direct contact by sellers. 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 agencies uncovered through our research or provided to us during the last 30 days. Upon request, we provide our Registered Buyers access to previous month’s and off cycle listings.

SHOP A: Arlington, Texas – A well-established five-year-old independent P&C agency is now for sale. Situated in a very visible location with high traffic, a growing community with consistent current clients and still growing. Has excellent growth potential with established clientele and cross-selling of commercial, life, and health insurance. Seller will carry some paper. Asking Price $190K / Reported Revenue $154K.

SHOP B: South Texas – A 35-five year-old Horace Mann book of business is now on the market. This book is made up of 80% home/auto and 20% annuity/life. Seller is producing $80K-$90K in commissions with $45K of that being in renewals. Seller has $1.7MM assets under management on the life and annuity side. Owner is will to stay on for 1 month and will sign a 2 year non-compete. Asking Price $140K / Reported Revenue $85K.

SHOP C: New Jersey – A 28-year-old independent Life and Annuity insurance business is now for sale. Fixed and variable annuities, IUL as well as whole and term life insurance. Primary markets are Allianz and American Equity. Asking Price TBD / Reported Revenue $360K.

SHOP D: Central Louisiana – A very strong standard personal and commercial lines independent P&C agency is up now for sale. This agency has contracts with most standard carriers and won’t last long. Asking Price TBD / Reported Revenue $600K.

Additional opportunities this month include listings in Florida, Georgia, Missouri, Oregon, and throughout all parts of Texas. Being associated with Springtree Group 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. For additional information on services and opportunities, call (972) 395-8811 or contact us online.