Business Overview

ProNova Partners is pleased to present this exceptional insurance claims recovery services enterprise that specializes in two very specific insurance-related verticals. The firm has a number of in-house attorneys and a large team of A-players that are ready, willing and able to scale with either a strategic buyer or a well-capitalized supportive capital partner that is looking for a platform in the property and casualty world in general or the workers compensation world specifically to capitalize on and grow. Unique to this business model is a long-term, contracted, revenue stream, (tail) that is worth today roughly $39 million and will account for approximately $2MM of the Company’s total annual revenue. Historically the Company had a solid sales team, but more recently the Company has essentially obtained all of their clients based on passive inbound leads from their website and referrals from either current and past staff or former & existing clients. The decision to not actively continue to market related entirely to the age and goals of the owners who chose to keep the business active but focus on dividend versus growth. Significant expansion opportunity exists for a Buyer with a good marketing engine. There are a large number of insurance carriers that should be using the Company which has penetrated only a small fraction of the total market.

NDA is required ‘LINK ABOVE} to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners which will cover in greater detail the line(s) of business the client is presently involved in.


  • Asking Price: N/A
  • Cash Flow: $1,491,114
  • Gross Revenue: $5,020,165
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1990

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:N/A
  • Lot Size:N/A
  • Total Number of Employees:25
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The company is based in a well-located build out but with C19 this space has grown to be discretionary at best. The space could provide a launching point for the Buyer or once the lease is up the Buyer would secure additional cost savings by going 100% virtual. =Part of the Company’s business continuity planning has included plans for all staff to be able to work from home. This planning and training has allowed the current team to thrive during the pandemic and they are just as or even more productive without having to go to the office officially.

Is Support & Training Included:

To ensure a smooth transition and ongoing success the Sellers will work with a buyer as needed.

Purpose For Selling:

Liquidity event and retirement for the shareholders.

Pros and Cons:

There are a few players in each vertical the business operates in but no one else does both within one organization and no one does it better than the Company in each respective line of business. No one merges the practice of business and law better in an area that requires both disciplines. The Company enjoys a very high retention rate.

Opportunities and Growth:

As stated, significant upside exists for those that want to invest in marketing, and extend the use of services across existing books of their current business. What is unique is the significant built in future cash flow to enable expansion to occur with little downside risk.

Additional Info

The venture was started in 1990, making the business 32 years old.

Why is the Current Owner Selling The Business?

There are all sorts of reasons people choose to sell operating businesses. Nevertheless, the real reason vs the one they tell you might be 2 completely different things. As an example, they might claim "I have a lot of various obligations" or "I am retiring". For numerous sellers, these reasons are valid. But also, for some, these may simply be justifications to try to conceal the reality of transforming demographics, increased competition, recent reduction in earnings, or a range of other factors. This is why it is very important that you not count completely on a seller's word, however instead, use the vendor's answer along with your total due diligence. This will paint a much more reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which lots of businesses are, then you will need to consider this when valuating/preparing your deal. Numerous operating businesses finance loans with the purpose of covering items like inventory, payroll, accounts payable, and so on. Keep in mind that sometimes this can mean that revenue margins are too small. Numerous organisations come under a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may additionally be future commitments to take into consideration. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with suppliers that should be met or might lead to penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do companies in the area attract brand-new clients? Many times, operating businesses have repeat consumers, which develop the core of their day-to-day profits. Particular factors such as new competitors growing up around the area, roadway building and construction, and also staff turn over can influence repeat customers and also adversely influence future incomes. One vital thing to consider is the area of the business. Is it in an extremely trafficked shopping center, or is it concealed from the highway? Clearly, the more individuals that see the business regularly, the better the opportunity to build a returning client base. A last idea is the basic location demographics. Is the business located in a largely populated city, or is it located on the outskirts of town? Just how might the regional average household earnings influence future revenue prospects?