Insurance M&A Services

Insurance M&AWith the average age of an agency owner being 59 years old, it is estimated that 75% of the current insurance agencies in the U.S. will have a transition ownership event over the next 10 years. These events can take many forms, including family perpetuation, partner buy-outs, mergers, book purchases and an actual sale.

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STG is singularly qualified to support insurance entrepreneurs whose firms have commission and fee levels under $10M annually, with a specific sweet spot between $5M and $300K. This market is ignored by the national insurance M&A firms and the strategic insurance buyers, like banks and national insurance brokers.

The number one issue for this market segment is the ability to finance these deals. This market segment does not have access to the significant pools of acquisition cash that the major buyers have. This lack of access to capital and the integration of the financing techniques with the insurance M&A process are absolutely critical needs in our target market.

STG satisfies the three primary concerns for both buyers and sellers in this market.

  • Secure confidentiality. Particularly in the Agent and Brokerage space, smart sellers want the sale to be kept very confidential so not to concern employees, clients, their insurance markets and particularly the competition. Only 10% of these transactions are made public.
  • Financial viability. Most sellers have numerous tales about financially unqualified buyers wasting their time, money and effort working on a deal only to find the buyer cannot or will not provide the proper financing or deal structure to complete the transaction.
  • Precision. A targeted approach helps STG and the client focus very specifically on only those targets that you know will fit the needs with the geographic parameters required. Of course time and money is saved for all concerned.

We view acquisition target development as 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 offers unique buyer services such as the monthly Seller Alert Services, which is provided to our buyers offering a North American sampling of agencies available for sale. We also offer a well-articulated step by step approached for our clients to find, negotiate, analyze, fund and close insurance agency transaction. Of course the critical piece is the employment of our multiple loan platforms and financial packages that bring the deal together.

There is no other company in the U.S. that provides a complete program of acquisition process development, surrounded by a full suite of financing tools in this very specific and hard to finance insurance agent and brokerage space.

We do not try to be all things to all people. STG is very specific and focused. We work only in the insurance space, working with entrepreneurs to buy and finance firms under $10M. We would enjoy the opportunity to help you if that is your profile. Please call us at (972) 395-8811, or download our General Capabilities brochure to learn more.