Springtree Group Knows the Valuation of Your Insurance Agency
There was a time when finding a buyer for an insurance agency worth $10 million or less was difficult simply because buyers were few and far between and bank financing on cash flow was nearly impossible. Now, private equity investors, family offices, and well-funded operators build entire roll-up strategies around insurance agencies just like yours.
Does that mean you should rush out to sell your agency to the first buyer who makes an offer? Not at all. Without a business intermediary like Springtree Group, you’re likely to miss out on the full valuation of your insurance agency. Learn more here about how we’re able to position your agency to attract the right buyer at the right time.
Highlighting Predictable Returns and High Retention Rate
One of the reasons mid-sized insurance agencies have become so valuable to buyers is that renewal-based income, in an industry with low churn, can create stable cash flow even in the face of economic turmoil.
This is also an excellent opportunity to showcase the internal operations you’ve put in place to make your agency appealing to clients and valuable to buyers. In doing so, we can better protect your partners and employees in the merger or acquisition.
Positioning Your Agency Within the Fragmented Market
Roll-up strategies are generally designed to increase profits and reduce spending by lumping multiple agencies under one parent company structure. To secure the best offer from an investor pursuing this type of growth, you need to stand out in multiple ways.
Springtree Group doesn’t just consider your current market value when putting together your valuation. With decades of experience in insurance M&As, we know what real buyers are looking for and can put your agency in front of the buyer seeking to secure your specific market or vertical.
Attracting Investors with Real Buying Power
Finding a buyer with reliable funds can be difficult in the small to mid-size insurance market. Springtree Group saw a need for secure loans and decided to fill it ourselves. The buyers we work with can use our significant lending relationships to provide growth capital to make smart investments at the right time.
As M&A intermediaries, we’re working to meet the needs of both buyers and sellers. Some companies may feel pressured by buyers to return lower valuations to stretch buying power. Thanks to our internal funding resources, we never lowball our sellers.
Partner with Springtree Group and maximize your insurance agency value. You know that your insurance agency is valuable to your clients. We understand how valuable your insurance agency is to private equity investors, strategic buyers, and regional consolidators.
Whether you seek a partial sale, recapitalization, or full exit, Springtree Group will position your agency to secure the buyer that can make those goals a reality. Contact us today so we can begin the process of evaluating your insurance agency.
