Listing ID: 77575

Business Overview

This well-seasoned independent insurance agency pivoted over the last 3 years after being one of many Farmers left for greener pastures. Years of success as a well-rounded agent kept the Seller running a viable operation. He focused on profitable commercial accounts and broadened the scope of work to include health and life policies. Clients in the close-knit community are quite loyal and given the opportunity and better pricing options than the standard big box carriers, the business can grow beyond its normal 1100 policies. A quarter of the 200 active policies are commercial accounts.

Currently, the Seller and his licensed brother (who works part-time) service clients and keep the renewals coming in. This book would be an excellent starting point for a new agent with good marketing and sales skills or a solid addition to an agent needing to branch out and cross-sell to an existing P&C book.

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Detailed Information

Facilities: The Seller has one desk in a professional office available to a Buyer. That space rents for $195 per month. The 110 square foot space included the use of a small conference room, reception support, Wi-Fi, and large signage on the outside of the well-located building near a DMV.

Competition: There is plentiful competition for insurance companies, the large database of devoted clients wanting a return to personal, caring, and friendly service is an advantage.

Growth & Expansion: The Seller has not actively pursued new clients or sought to write new policies in the last year, focusing only on taking care of commercial clients. Hiring a new producer and reaching out to old clients to intentionally seek the writing of new policies would be the first step to increasing revenue. Doing some local advertising and adding social media platforms would also be beneficial.

Financing: TBD if necessary should structure and terms be acceptable.

Support & Training: To ensure a smooth transition and ongoing success the Sellers will work with a buyer for up to a month. His brother, who does the accounting and customer service, maybe available longer if needed, for up to two or three months.

Reason for Selling: The Seller is looking to retire and spend time with a new grandchild.

Financial

  • Asking Price: $180,000
  • Cash Flow: N/A
  • Gross Revenue: $88,750
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1985

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:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Seller has one desk in a professional office available to a Buyer. That space rents for $195 per month. The 110 square foot space included the use of a small conference room, reception support, Wi-Fi, and large signage on the outside of the well-located building near a DMV.

Is Support & Training Included:

To ensure a smooth transition and ongoing success the Sellers will work with a buyer for up to a month. His brother, who does the accounting and customer service, maybe available longer if needed, for up to two or three months.

Purpose For Selling:

The Seller is looking to retire and spend time with a new grandchild.

Pros and Cons:

There is plentiful competition for insurance companies, the large database of devoted clients wanting a return to personal, caring, and friendly service is an advantage.

Opportunities and Growth:

The Seller has not actively pursued new clients or sought to write new policies in the last year, focusing only on taking care of commercial clients. Hiring a new producer and reaching out to old clients to intentionally seek the writing of new policies would be the first step to increasing revenue. Doing some local advertising and adding social media platforms would also be beneficial.

Additional Info

The company was founded in 1985, making the business 37 years old.

Why is the Current Owner Selling The Business?

There are all kinds of reasons individuals choose to sell operating businesses. Nevertheless, the genuine reason vs the one they tell you might be 2 absolutely different things. As an example, they might say "I have a lot of other responsibilities" or "I am retiring". For numerous sellers, these factors stand. However, for some, these may simply be excuses to attempt to hide the reality of altering demographics, increased competition, current reduction in earnings, or a variety of other factors. This is why it is very essential that you not count entirely on a seller's word, yet instead, make use of the seller's response combined with your total due diligence. This will paint a more realistic picture of the business's existing scenario.

Existing Debts and Future Obligations

If the existing entity is in debt, which numerous companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous businesses finance loans so as to cover items like inventory, payroll, accounts payable, so on and so forth. Bear in mind that sometimes this can indicate that earnings margins are too small. Lots of businesses fall into a revolving door of taking loans as a way to pay back various other loans. Along with debts, there may also be future obligations to think about. There might be an outstanding lease on tools or the building where the business resides. The business might have existing agreements with vendors that should be fulfilled or might cause penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area draw in new consumers? Often times, companies have repeat customers, which create the core of their daily profits. Particular aspects such as new competitors growing up around the area, roadway building and construction, as well as personnel turnover can affect repeat customers as well as negatively influence future incomes. One essential thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it concealed from the highway? Undoubtedly, the more individuals that see the business regularly, the greater the opportunity to build a returning customer base. A final thought is the basic location demographics. Is the business located in a densely populated city, or is it located on the outskirts of town? How might the neighborhood median house earnings effect future income prospects?