WE ARE EXCITED! Now that we are approaching the mid-point of 2021, we have been able to gather sufficient data that allows us to definitively state: Insurance M&A activity has not been negatively affected by the pandemic.
As restrictions continue to be lifted, agency buyers and sellers are able to confidently determine what their organizations will look like in 2021 and beyond. Additionally, the lending industry has become more competitive due to intervention by the FED. The new Federal Stimulus Program will provide payment for your principal and interest (up to $9000 a month) for 3 months, while the Small Business Administration will waive the guarantee fee which (usually around 2% of the total loan amount.) THERE IS NO DOUBT THAT THIS IS A ONCE IN A LIFETIME OPPORTUNITY.
The listings below are a MERE SAMPLE of the agencies in our huge inventory of independents. For the complete list: email Sam@SpringtreeGroup.com.
SHOP A: California: This independent Property and Casualty agency is now for sale. With a focus on business insurance, this agency specializes in contractors’ insurance including subcontractors, general contractors, recycling companies, retailers, small grocery stores, restaurants, and retail stores. They are experts in high-risk policies, like local commercial trucking (delivery truck), general liability policies, and workers’ compensation.
Reported Revenue: $240K / Asking Price: 2.3X / Tracking Code: DCALL
SHOP B: Nevada: A three-location Property and Casualty non-standard agency is now for sale in the Las Vegas metro area. The focus of this shop is all auto. Five bilingual employees are expected to stay after the transition. Markets include Progressive, Mendota, Key, Foremost, National General, Arrowhead and Dairyland among others.
Reported Revenue: $328K / Asking Price: 1.75X / Tracking Code: SNVCO
SHOP C: Illinois: This long-standing independent agency located in southern Illinois is now for sale. The agency has been doing business since the mid 1970ss and has a mix of personal and commercial lines business. The agency does not get walk-in traffic and has no employees. The buyer for this agency will need to hold appointments with Grinnell Mutual and Heartland Mutual. This agency is about 95% Standard and 5% Non-Standard lines business.
Reported Revenue: $192K / Asking Price: 2.5X / Tracking Code: DILCY
Why is the insurance space so active?
- The PEG (Private Equity Group) sector has shown increased demand
- More baby boomers are reaching retirement age
- Better financing options are now available to potential buyers
Does the insurance market look favorable right now? We can only answer that with an enthusiastic YES IT DOES! However, when you work with Springtree Group, you eliminate the potential for a myriad of roadblocks. Also, as you’ve seen from our sample list above, we are the first to know when an agency is listed for sale. In fact, we often know about a sale before the current owner has officially listed!
IMPORTANT: This post includes only 3 of the MANY agencies that we have information about. To learn more about listings in Michigan, Mississippi, Nebraska, Pennsylvania, Indiana, Kentucky, Texas (multiple listings), California (multiple listings), Florida (multiple listings), the Rocky Mountains and more, reach out to us via email at Sam@SpringtreeGroup.com.