Description
OFF MARKET PRESENTLY!
Multiple Location Standard / Non-Standard Auto Agency Tech Driven!
San Diego, CA – (San Diego County)
Seller Financing Available!
- Asking Price: $2,600,000
- Cash Flow: $635,000
- Gross Revenue: $1,450,000
- EBITDA: N/A
- FF&E: $25,000
- Inventory: N/A
- Established: 2005
Business Description
Multiple Location Standard / Non-Standard Auto Agency Tech Driven! – This dynamic agency with 2 locations utilizes a scalable marketing system to produce approximately 1000 policies per month. A 13-year-old agency with a strong book of business, licensed in multiple states. 8 licensed producers with a relatively low turnover. Paperless and technology-driven, with heavy lead flow due to consistent and effective advertising. Most policies on EFT. Great quality control and good relationships with carriers.
NDA required for first round due diligence package.
Detailed Information
- Employees: 10
- Furniture, Fixtures, & Equipment (FF&E): Included in asking price
- Facilities: 2 offices located in retail centers – 1 in San Diego 1, in the Greater Phoenix area. Long term lease in place for San Diego office. Phoenix area office lease does expire in 2019, so it could stay open or be closed with this sale, depending on the Buyer’s ideal plan. A small number of clients come into each office to pay bills, but most business is done online, through email, and through text, so both offices are relocatable.
- Competition: Plenty of competition in the standard and non-standard auto insurance space. This Company is very well positioned with advertising, online presence, and brand recognition. Rapid response to inquiries and a high level of customer service make this Company a strong player in the space.
- Growth & Expansion: This is an excellent roll-up opportunity for an existing agency that can take advantage of cross-selling opportunities. An owner-operator who wants to take over the agency as-is can sustainably grow by adding producers, potentially adding an additional marketing channel, and continuing to take excellent care of prospects and clients.
- Financing: If the price and deal structure are right.
- Support & Training: As needed.
- Reason for Selling: Other business Interests.
Competitive Landscape
Low-interest rates, sluggish premium growth, and rising catastrophe losses are putting downward pressure on margins for insurance agencies and brokerages. Soft market conditions drive consolidation in the industry as companies look to maximize revenue growth.
While the traditional intermediation model remains dominant worldwide, direct-to-consumer digital distribution of insurance policies threatens brokerage sales in many established and emerging markets. Companies also face growing competition from banks, financial advisers, and nontraditional distributors.
To win business, agencies rely on marketing, client referrals, and customer service. Name recognition, connections with more insurers, and the ability to craft more complex insurance packages are benefits of belonging to large brokerage networks. Small agencies may compete by specializing in a specific product line or customer group.
When the economy contracts, demand for insurance falls as consumer income and commercial activity decline. During periods of economic difficulty, smaller agencies may branch into more diversified fields to build business. Despite the prominence of large companies in the commercial segment, the US industry remains highly fragmented: the largest 50 firms account for about 25% of revenue. – (source: Dunn & Bradstreet First Research)
Bright Outlook
As a very well-run agency with aggressive advertising and a streamlined sales process, this is an excellent acquisition as an add-on for a larger company or for an owner operator that wants to step into a business that is already profitable.
The Seller suggests that the Buyer of this Company continue the same practices already in place, add salespeople, increase cross-selling, and if possible, apply economies of scale to lower costs and improve outreach. A deep dive into the financial history of this Company will show the tremendous growth that current systems have made possible over what the Company was doing before the current Owner acquired it. We see a very bright outlook for the new Owner who takes it from here.
Competitive Advantage
The Company believes that customer service and quick response are key to retaining and gaining new customers. They rely heavily on technology to reach the customer fast through an auto dialer and auto texting.
Because the Company has appointments with so many carriers, agents are able to very quickly find the best possible rate for a prospect. The combination of the large product inventory and quick response customer service, along with continuous advertising, all contribute to this Company’s competitive advantage.
ProNova Partners Buyer Profile & NDA
***RED STARS ARE REQUIRED FIELDS*** This information is required and must be filled in completely before the Seller will release any vital information, including business address, financial due diligence package on file, and other sensitive confidential information. It will also be used by ProNova Partners to match your buyer profile with future similar engagements our firm has for sale. * Required
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