Sold 'Q1 2017
Perfect acquisition target for a roll up by a larger agency nationwide (but licensed in CA) or for a seasoned commercial Owner operator to take the place of the existing Seller. 1,142 different policies spread across 812 individual customers up for grabs according to last AMS360 census report ran on 8/3/16. Adjusted net income is for an active commercial agent/operator with significant underwriting experience and customer service chops. Larger agencies may incur servicing costs (1.5 FT employees approx. plus the primary commercial producer/account manager) to remarket & service the book properly. Aggregate premium is $2.6MM total. Top carriers/MGA's include Harry W. Gorst, Allied, Employers, Norguard, Burns & Wilcox, Mercury commercial, Leading, Oregon Mutual, and The Hartford (among many others...) Since the Seller writes through about 60+ MGA's and direct carriers the market access he has provides significant underwriting/quoting/binding power which contributes to his historically high 90-95%+ annual retention over the years. NDA is required for comprehensive book of business reports & historical financial package on file with Ace Business Brokers.
Employees: 3 PT
Furniture, Fixtures, & Equipment (FF&E): Included in asking price
Facilities: Office park based business with plenty of room to roll-in on site if the Buyer wants to. Alternate higher cash flow scenario would be to port it into the Buyer’s existing infrastructure, dump the lease and save about $2600 per month on the current lease payment.
Competition: Insurance is a competitive industry but this patriarchal Seller has taken care of his loyal client base over many many years.
Growth & Expansion: Minimal personal lines have been cross-sold to this book of clients, opportunity abounds. No health, no life insurance cross sold yet.
Financing: $900k Down, $7k / Month for 50 Months!
Support & Training: As needed.
Reason for Selling: Retirement.
Ace Business Brokers NDA & Buyer Profile
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