SOLD-SoCal Mercury Insurance Book of Business for Sale

SOLD ‘Q2 2022

California Mercury Insurance Book of Business for Sale

Los Angeles, CA (Los Angeles County)

Asking Price: $900,000

Cash Flow: $214,935

Gross Revenue: $298,327

EBITDA: see CIM

FF&E: Included

Inventory: N/A

Established: 2001

Employees: 2

Carriers: Mercury, Travelers, Kemper, National General, and others

Business Description

Approx 1150 policies in force and close to $2.4MM in premiums. Nearly 70% of commission income comes from Mercury and represents preferred personal lines – home and auto. There is a small percentage of nonstandard auto, some commercial lines and group health.

Seller has been pulling back from operating this business for a few years now, and the two employees run the day to day. Seller is ready to retire from insurance and seeks a Buyer who is appointed with Mercury to take over the Business. Excellent roll up opportunity for a Buyer who can continue to take care of these clients and who can offer additional products as well.

NDA is required {SUBMIT BELOW} to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.

Detailed Information

Facilities:

882SF office in the San Fernando Valley that is on a month-to-month lease. Rent is $2526 per month. All FF&E can be included with the sale if desired.

Competition:

Competition among insurance agencies and among carriers in Los Angeles is highly fragmented. Mercury offers very competitive rates in preferred personal lines, and
clients tend to stay with Mercury for a long time as those rates are hard to beat.

Growth & Expansion:

This book really hasn’t been worked for cross selling or upselling in a long time – so there will be some opportunity there for a Buyer who knows how to do this well and who has additional products they can offer to these customers.

Financing:

Cash Sale preferred – but make an offer and the Seller will evaluate terms on a case by case basis.

Support & Training:

Reasonable transition terms to be negotiated to ensure a smooth transfer of the book of business to the Buyer

Reason for Selling:

Leaving insurance and pursuing other business and personal interests