Business Overview

Offered for sale is an insurance agency based in NW Arkansas. The agency is captive with one of the nations largest insurers which will help you to capture market share on brand recognition alone. The corporate model is seeking aggressive growth and subsequently paying high incentives for new business. The seller is ready to retire and has the agency at an attractive price.
This business is affiliated with one of the longest running insurers in the country.
When uncertainty arises, people look to insure their way out of the next uncertain time. The coming years could be a boom time for insurance as people look to shore up assets.

Financial

  • Asking Price: $299,000
  • Cash Flow: $149,628
  • Gross Revenue: $226,000
  • EBITDA: N/A
  • FF&E: $11,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: N/A
Purpose For Selling:

retirement

Additional Info

The building is leased by the business for $750 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons why people choose to sell businesses. Nevertheless, the true reason vs the one they tell you may be 2 absolutely different things. For instance, they may claim "I have too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these may just be reasons to attempt to hide the reality of transforming demographics, increased competitors, recent decrease in earnings, or a variety of various other factors. This is why it is very important that you not rely totally on a vendor's word, yet instead, use the seller's response along with your overall due diligence. This will repaint a much more realistic picture of the business's existing situation.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Numerous companies finance loans in order to cover items such as supplies, payroll, accounts payable, and so on. Remember that in some cases this can imply that profit margins are too thin. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may additionally be future obligations to consider. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that must be fulfilled or might lead to charges if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do operating businesses in the area bring in new clients? Often times, operating businesses have repeat clients, which develop the core of their everyday revenues. Certain factors such as new competitors sprouting up around the location, roadway construction, as well as personnel turnover can impact repeat consumers and adversely influence future earnings. One important point to think about is the area of the business. Is it in a highly trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business regularly, the higher the possibility to construct a returning customer base. A last thought is the general area demographics. Is the business placed in a largely populated city, or is it situated on the edge of town? How might the local mean family earnings impact future earnings prospects?