Welcome to the September edition of the Springtree Group Insurance Agency Sales Alerts publication. Middle market buyers continue to be enthused about buying opportunities, primarily because of four critical motivations:

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

In our view, the most effective tactics in acquisition target development include a multi-level and joint endeavor, using the national approach that STG provides in concert with the “boots on the ground” 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% of the agency sellers that are not openly communicating their intention to sell.

Our deal sources include our in-house 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 the STG financing division. This activity is supplemented by our network of consultants, attorneys, CPA’s, 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 D: New Mexico – Standard Lines Agency. This agency is a well-established turnkey General Lines Independent P&C agency located in New Mexico. Agency is made up of 90% standard and 10% non-standard lines. The agency has a primary focus in the farm and ranch business and has significant cross selling potential for the new owner. Major insurance markets include: Hartford, Travelers and Safeco, among others. Asking Price $125K / Reported Revenue $70K.

SHOP E: South Texas – A well-established non-standard independent P&C agency with its primary focus on auto insurance. This agency continues to increase its revenue numbers year after year. Location is important to this agency and has a large amount of walk-in traffic with 95% of its clients being in South Texas. Major markets include ACCC Insurance and Aggressive. Asking Price $1.4MM / Reported Revenue $945K.

SHOP I: Central Ohio – An independent, very well established Long Term Care, Annuity and Medicare Supplement insurance practice is now for sale. This is an ideal opportunity for an independent agent to tap into the highly profitable and very sticky LTC product lines quickly and cross sell additional lines. Asking Price $290K / Reported Revenue $166K.

Additional opportunities currently exist from coast to coast, including insurance agencies for sale in Arkansas, Florida, Ohio and California, among other areas. 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. Please call (972) 395-8811 or contact us online for additional information on services and opportunities.