Diving into the second half of 2021 and reviewing the M&A activity for the first half of the year, we are happy to report that not only has the pandemic not crippled the sales, mergers, and acquisitions activity in the insurance industry, but the demand and activity continue to be robust.

While it may be hard to believe, there is indeed strong activity in the insurance space. Several factors are at work: the PEG (Private Equity Group) sector has lifted demand because of continued strong fundamentals, baby boomers are reaching retirement age thus putting more agencies on the market, and there are competitive financing options available to qualified potential buyers.

Although the insurance space shows continued strength, it’s more important than ever to work with an intermediary. Doing so helps buyers and sellers find each other when they would otherwise meet roadblocks that stall transition events. Springtree Group’s extensive pipeline of opportunities comes from our network of attorneys, consultants, CPAs, loan underwriters, DOIs, PEGs, Strategic Partners, broken financing transactions, and an ever-expanding pool of sell-side intermediary relationships.

Many insurance agency sellers often want to conceal their desire to sell (due to an understandable fear of the impact this information could have on the health of their agency). We are able to keep our fingers on the true pulse of the market through our research team’s outreach to our vast network of contacts. As a result of the ingenuity and dedication of our marketing group, they stay ahead of prospects in presale, preparing sellers well before they are ready for us to take them to market. Only 10% of agency sales are known to the public, which is why you may have trouble finding an agency to add to your portfolio when you’re searching alone.

An additional bonus for those who want to buy now using our SBA 7(a) loan packages: the FED has agreed to pay 3 months of payments for SBA borrowers. This is a once-in-a-lifetime bargain for those buyers that can quickly get a deal in the pipeline. Please talk with us ASAP. The cut-off for this program is September 30. If you are a buyer, we can’t advise strongly enough that you call us to jump on this opportunity TODAY.

The following is a small sample of agencies currently actively for sale. To learn more or to get access to our full list of agencies for sale, please email us at service@springtreegroup.com or visit our website at www.springtreegroup.com.

SHOP A: Virginia: This independent family-owned and operated insurance agency is now for sale. The agency has a focus in Medicare supplements, long-term care, senior products, and some P&C. Primary carriers include Aetna, Cigna, United Health, Humana and many more.  The agency has 4 agents (including the 2 owners), 2 CSRs and 1 part-time employee.  Reported Revenue: $563,000 / Asking Price: 2.5X / Tracking code: DVACN

SHOP C: California: This 16 year old agency specializes in P&C insurance. Offering a robust spectrum of products from P&C for auto, business, home, to health and life insurance, they have secured direct appointments with Kemper, Safeco, Dairyland, Infinity, and many more.
Reported Revenue: $900K / Asking Price: 2.5X / Tracking Code: DCADM

SHOP F: Mississippi: A full-service independent, two-location Property and Casualty agency is now available for sale in Mississippi. The agency currently has 8 employees (7 are 1099s) and is made up of 40% commercial lines. Direct appointments with Safeco, Travelers, Progressive, Foremost, CNA, MetLife and more! Also, the shop has a relationship with Iroquois and Burns & Wilcox for E&S covers.
Reported Revenue: $500K / Asking Price: 2.25X / Tracking Code: DMSWM