Business Overview

Farmers Insurance Agency with a solid book of business. Established in 2019 and licensed in Tennessee, Mississippi, and Arkansas. The agency has a mixed clientele including, but not limited to, Home, Auto, and specialty insurance. Providing great service has proved to be successful as the agency’s excellent online reviews can confirm. The Agency has a total Annual Premium of $1,059,102 with a client retention rate of 80% since opening.
INVESTMENT HIGHLIGHTS:
? Farmers Insurance support level, training, and resources
? Agency’s high retention rate

GROWTH OPPORTUNITIES:

The Company has opportunities for quick growth as identified below:

• Geographic Expansion: Pursuing untapped markets in nearby states such as Tennessee, Mississippi, Alabama, and Florida could be a quick way to expand the current client base and increase revenue.

• Marketing Campaign: An extensive marketing campaign on major social media platforms could increase awareness of the company and complement current sales drivers.

Financial

  • Asking Price: $309,000
  • Cash Flow: N/A
  • Gross Revenue: $110,980
  • EBITDA: N/A
  • FF&E: N/A
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2019

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:2
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Leased Office Space

Is Support & Training Included:

Seller will train to ensure a smooth transition

Purpose For Selling:

Moving Out of Area

Established Franchise:

This Business Is An Established Franchise

Additional Info

The business was established in 2019, making the business 3 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons why people resolve to sell operating businesses. Nevertheless, the genuine reason and the one they tell you might be 2 totally different things. As an example, they might state "I have way too many other obligations" or "I am retiring". For lots of sellers, these factors are valid. However, for some, these might simply be reasons to attempt to hide the reality of changing demographics, increased competitors, recent reduction in incomes, or a range of other reasons. This is why it is really vital that you not rely absolutely on a vendor's word, however instead, make use of the vendor's answer combined with your total due diligence. This will repaint an extra realistic image of the business's current scenario.

Existing Debts and Future Obligations

If the current company is in debt, which lots of companies are, then you will certainly need to consider this when valuating/preparing your offer. Numerous operating businesses take out loans in order to cover items like stock, payroll, accounts payable, etc. Bear in mind that in some cases this can mean that earnings margins are too tight. Many businesses come under a revolving door of taking on debt as a way to pay back other loans. In addition to debts, there may likewise be future commitments to consider. There may be an outstanding lease on tools or the structure where the business resides. The business might have existing agreements with suppliers that should be met or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

How do operating businesses in the location bring in brand-new consumers? Often times, companies have repeat customers, which form the core of their daily profits. Particular factors such as new competition sprouting up around the location, roadway construction, and also employee turn over can impact repeat clients and negatively influence future revenues. One vital point to take into consideration is the placement of the business. Is it in an extremely trafficked shopping mall, or is it hidden from the highway? Obviously, the more people that see the business often, the greater the chance to construct a returning client base. A last thought is the general location demographics. Is the business situated in a largely populated city, or is it located on the outside border of town? Exactly how might the neighborhood median family earnings influence future income prospects?