Business Overview

Confidential Information Memorandum (CIM) available upon receipt of our short online NDA – visit here:

Originally established as an independent insurance agency in 1995, this thriving Business was founded on a philosophy of offering personal and professional service. Since then, it’s grown into a full-service agency providing a range of insurance products to individuals, families, and businesses throughout California and Arizona.

Mercury General Corporation is a multiple-line insurance organization offering personal automobile, homeowners, renter and business insurance. Mercury clients makes up 29% of the entire book. On the whole, approximately 39% of business comes from commercial insurance with the other 61% in personal via one of the agencies 130 appointed carriers.
The client base was enhanced by modern advertising approaches prior to opening the business; launching local ads to attract new customers, loading the agency with new leads as it opened for business. Still today, the seller looks at marketing and advertising proactively as an opportunity to cross-sell every existing and new client in its appointment book.

NDA is required ‘LINK ABOVE} to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.


  • Asking Price: $3,000,000
  • Cash Flow: $550,000
  • Gross Revenue: $990,000
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 1995

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:5
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

The Agency is centrally located in a small commercial building owned by the Seller. The building is not for sale. It is NOT included in the sale of the business.

Is Support & Training Included:

To ensure a smooth transition and ongoing success the Sellers will work with a buyer as needed for three months, and up to six months as on-call consultants, or as negotiated.

Purpose For Selling:

The Seller is looking to retire and spend time with his elderly parents.

Pros and Cons:

The Mercury name has great value as a recognized brand. It offers an advantage in a somewhat fiercely competitive industry. But to stand out amongst the others, agencies have to offer exceptional customer service and a wide range of provider choices to meet a wide range of client needs.

Opportunities and Growth:

Hire additional agents, designed and implement a commercial marketing campaign and nurturing online presence. Consider adding (or growing) other insurance related products like financial advisory and planning, like long-term care insurance and annuities.

Additional Info

The venture was started in 1995, making the business 27 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals choose to sell businesses. However, the real reason and the one they say to you might be 2 completely different things. For instance, they may say "I have too many various commitments" or "I am retiring". For many sellers, these reasons stand. But, for some, these may just be justifications to attempt to hide the reality of altering demographics, increased competition, current reduction in earnings, or a range of other reasons. This is why it is extremely essential that you not depend totally on a seller's word, but rather, use the vendor's solution along with your general due diligence. This will repaint a much more realistic image of the business's current situation.

Existing Debts and Future Obligations

If the existing business is in debt, which many companies are, then you will certainly need to consider this when valuating/preparing your deal. Numerous operating businesses take out loans with the purpose of covering points like stock, payroll, accounts payable, so on and so forth. Keep in mind that sometimes this can imply that earnings margins are too tight. Lots of businesses come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There may be an outstanding lease on equipment or the building where the business resides. The business might have existing contracts with suppliers that need to be fulfilled or may lead to penalties if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do operating businesses in the area attract new consumers? Most times, businesses have repeat customers, which create the core of their everyday earnings. Certain variables such as brand-new competition sprouting up around the location, roadway construction, and employee turn over can impact repeat consumers and also adversely impact future profits. One essential point to think about is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the main road? Undoubtedly, the more people that see the business on a regular basis, the higher the opportunity to build a returning consumer base. A last thought is the basic location demographics. Is the business placed in a largely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood average home earnings influence future earnings prospects?