January 2020 Independent Agency Sales Alert

We welcome you, our STG Buyers, to the first 2020 edition of our Insurance Agency Sales Alerts. Cash reserves have continued to grow as the regulatory climate has relaxed, giving reason for optimism within this year’s insurance M&A sector. The close of 2019 was strong, proving 2019 to be one of the most active insurance M&A years in recent history. This continued upward trend indicates that 2020 will be another highly active year, meaning that there will likely be advantageous deals throughout.

Despite the healthy state of the M&A market, you will be unable to capitalize on this opportunity if you don’t know where to begin. Should you be eager to dip your toe into the waters of the insurance industry market, how would you locate agencies for sale? How will you determine which agencies are a good fit for your goals? This is where Springtree Group steps in to assist. Our team of insurance industry specialists serve the insurance community in this specific capacity.

Below, we’ve listed just a few of the independents our research has uncovered in the last month. Upon request, we will grant our clients access to listings from prior months in addition to our hand-picked off-cycle listings.


SHOP D – Michigan: This unique agency specializes in assisted living centers, adult foster care, and home health coverage. Established in 1968, today the agency supports 3 employees full-time and 1 bookkeeper part-time. Carriers include Fremont Mutual, Dairyland, Progressive, Lloyds, and many more!
Reported Revenue: $280k. Asking Price: 2.5X Revenue. Tracking Code: DMIDH


SHOP H – Wyoming: This agency, established 30 years ago, specializes in trucking, oil, and gas businesses. Listed for sale recently, this agency operates in Utah, Wyoming, Texas, Colorado, Nebraska, Oregon, and beyond. Currently, the portfolio is split 10% personal, 90% commercial lines. Carriers include Progressive, Safeo, Nationwide, Grange, Foremost, and more. Reported Revenue: $385K. Asking Price: 3X Revenue. Tracking Code: DWYBS.


SHOP K – Texas: Located in Houston, TX, this full-service agency was established in 2013. Today it boasts a healthy mix of P&C, Health and Medicare Advantage and Supplement companies. Its primary carriers include Aetna, UPC, Progressive, and Blue Cross Blue Shield. The current two staff members have been employed for over a year and have expressed their desire to stay and work for the new owner.
Reported Revenue $440K. Asking Price 2.75X Revenue. Tracking Code: DTXSL.


Springtree Group houses a robust, large financial practice in addition to our team of insurance agency specialists. Should you require financing, we strongly recommend working with our lenders. In this way, we can integrate your M&A portfolio into your financing endeavor. Working with us does not increase your cost in any way, alleviates your workload, and gives you a much greater chance of securing financing. Because botched financing is the main reason deals fail, this savvy move could make the difference between investment success or having to bow out of a bidding war.

Your association with STG gives you unlimited access to the most robust array of M&A tools, financial resources, and skilled support services to promote the success of your acquisition, perpetuation, and operational needs anywhere in North America. We are proud to support our clients in North and South America, The Bahamas, Africa, and across Europe. For more information on any of our services, or to obtain further details on any agencies listed in today’s sales alert, please email us at your convenience at Service@SpringtreeGroup.com.