During this time of economic uncertainty, it is understandable that some investors have decided to hold off on entering new ventures. Mergers and Acquisitions have slowed across the board, but in the insurance space, activity is booming. Springtree Group can take advantage of the current market environment to arrange insurance acquisitions that are financially beneficial for both buyers and sellers.
Currently, financing is available at record-setting lows. When money is easy to access, buyers can expand their portfolios in ways that might not have been possible under a more robust economy. If you would like to add an independent business to your holdings, insurance agencies are ideal. Unlike most private businesses, insurance agencies offer a product that people are often required by regulation to purchase or needed no matter what the condition of the economy.
As a result of this dynamic, insurance agencies have held their value throughout serious economic downturns in recent history. Even the 2008 recession did not diminish agencies’ worth, despite the devastating impact on the vast majority of market sectors.
If you are in the fortunate position of having capital to invest this year, we urge you to join our most strategic buyers and sellers in making long-term plans that will pave your entry into the next bull market. Make no mistake: we will see a booming economy resurge before long. At that time, financing will undoubtedly once again be more expensive, agencies will be snatched up before they’ve hit the market, and less prepared investors will be struggling to get a toehold in the flurry of activity that results.
Investors who work with Springtree Group this year will be encouraged to choose agencies to purchase that will help futureproof their portfolios. It is possible that the market will continue to flounder before it rights itself; should that happen, we want our investors to have agencies on board that will remain financially robust through adverse conditions.
Springtree Group has decades of experience in the private insurance mergers and acquisitions space. When you choose to work with us, you can feel confident that our analysis of agency health is as accurate as possible. Do not put yourself in the position of having to arrange financing, analyze an agency’s future, and focus on the minutiae of the deal all at once.
Instead, team up with Springtree Group as your intermediary. We have extensive in-house financing expertise, market savvy, agency insight, and an unwavering dedication to connecting funded buyers with motivated sellers.
This year, we will see private agencies sold that have earned community respect and loyalty. These agencies are going to operate without a snag despite the adversity seen throughout the economic landscape. If you are investing this year, we are ready to begin working to locate one of these agencies for you.
No matter where you reside, Springtree Group can help you enter the private insurance sector or expand your current holdings. Reach out to us today to learn more.
Please note buying and selling private agencies is a lengthy process. It is possible that complications from the Covid-19 pandemic will add further delays. While deals may take more time to close, STG is dedicated to continuing to assist our valued members with M&A in 2020.