Sold 'Q2 2017
Once in a generation acquisition target for a large insurance agency or well capitalized private party looking for a long term cash flow / ROI play. Retention rates in the 90's, loss ratios in the 60's across the entire book and all carriers. Heavily concentrated in one carrier with a commission rate of 14.5%, primarily P&C personal auto, with about 10% home and <1% commercial. This is the satellite office of a large agency that grosses $4MM total.
There are two golden geese in this acquisition: 1) This is a cross sellers paradise. Here lies a pool of 6,500+ health insurance cases, life insurance cases, annuities/AUM type targets, commercial accounts/business owners, the sky is the limit. Assuming only 10% penetration you have an additional 600+ customers ACROSS EACH DIVISION!! Maybe more is possible, depends on the acquiring entity. 2) Seller is a master at operations management and extracts an industry best production and net income level on a per employee basis. Sprinkle some of that secret sauce into your organization, and consider how much more profitable would you be if you were running at ~$400k in revenue per staff member??? That IP alone is worth the price, let alone the book of business, future commissions, and cross sale empire to secure.
Opportunity exists to purchase the entire agency for $24MM. NDA is required for comprehensive 22 page Confidential Information Memorandum crafted by Ace Business Brokers.
Furniture, Fixtures, & Equipment (FF&E): Included in asking price
Facilities: Single office acquisition target. Easy lease to absorb or get out of. Clients have been trained to be serviced and supported remotely, 99% direct bill, very few clients visit the subject locations to make payments. Ideal roll up or take over as-is per Buyer preference.
Competition: Insurance is a very competitive industry, but this Agency has weathered the various upturns and downturns due to its impressive size and retention metrics.
Growth & Expansion: A cross selling paradise. Round this out for another million or two in revenue upside if the right Buyer is strong in other lines.
Financing: $6MM Cash Down – $1.0MM Carry @ 0% Over 3 Years! Discount available for all cash transaction!
Support & Training: All employees will stay. Seller will stay for as long as needed per Buyer request and subject to mutual negotiation of a long term satisfactory consulting/employment arrangement.
Reason for Selling: Liquidity event for Seller.
Ace Business Brokers NDA & Buyer Profile
NDA’s are always required to secure due diligence packages for our engagements. Please reference 628 Insurance when typing your name on our form please! Thank you!!
Please take a moment to CLICK HERE, to fill out our online confidentiality agreement. Once we receive your NDA we will follow up and provide the due diligence package on the opportunity you are interested in.