Business Overview

This agency has $2,838,000 MM in Agency Earned Premium, Agency Income of $346,552 for 2020 and 2,288 policies in force.

This agency is almost 2 times larger than the average agency with plenty of room to grow.
The hardest part of opening an agency is building the book, this agency has already built a strong book of business.

Financial

  • Asking Price: $560,000
  • Cash Flow: $91,985
  • Gross Revenue: $371,851
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2015

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:3
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Building is 1500 sq ft. Rent is $1600 / month utilities not included. Lease is currently month to month.

Is Support & Training Included:

Will train for 4 weeks @ $0 cost. Licenses required: Agent: Property and Casualty Agent: Life and Heath

Purpose For Selling:

He plans to work with his wife in real estate for the near term.

Pros and Cons:

All insurance companies will always be competition. This Insurance Company is focused on the preferred market, and have recently opened their doors to the Standard market.

Opportunities and Growth:

Cross sell This agency has been 100% focused on Homeowners insurance for the past 3 years. They have hundreds of households that can be cross sold auto insurance, which will significantly increase agency revenue.

Established Franchise:

This Business Is An Established Franchise

Additional Info

The company was founded in 2015, making the business 7 years old.

Why is the Current Owner Selling The Business?

There are all types of reasons individuals resolve to sell companies. Nevertheless, the real reason vs the one they say to you may be 2 completely different things. For instance, they might state "I have a lot of other responsibilities" or "I am retiring". For many sellers, these factors stand. But also, for some, these may just be reasons to try to conceal the reality of altering demographics, increased competitors, recent reduction in profits, or a range of various other factors. This is why it is extremely crucial that you not rely completely on a seller's word, however instead, use the seller's answer in conjunction with your total due diligence. This will repaint a more reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the existing business is in debt, which lots of companies are, then you will certainly have reason to consider this when valuating/preparing your offer. Numerous operating businesses borrow money in order to cover things such as supplies, payroll, accounts payable, etc. Keep in mind that in some cases this can indicate that revenue margins are too thin. Many businesses fall under a revolving door of taking loans as a way to pay back other loans. Along with debts, there may likewise be future obligations to take into consideration. There may be an outstanding lease on equipment or the structure where the business resides. The business might have existing agreements with vendors that must be met or may result in charges if terminated early.

Understanding the Customer Base, Competition and Area Demographics

Just how do companies in the location draw in brand-new clients? Many times, companies have repeat customers, which develop the core of their daily profits. Certain aspects such as new competitors sprouting up around the area, road building, and also personnel turn over can affect repeat consumers and also adversely influence future incomes. One important thing to think about is the placement of the business. Is it in a very trafficked shopping center, or is it concealed from the highway? Clearly, the more people that see the business regularly, the higher the chance to construct a returning consumer base. A final idea is the basic location demographics. Is the business located in a densely populated city, or is it situated on the outside border of town? Exactly how might the neighborhood typical family earnings impact future earnings potential?