$1.6MM Commission Preferred California Insurance Agency (Or Book Only)

Los Angeles, CA (Los Angeles County) (Relocatable)

Seller Financing Available
$1.6MM Commission Preferred California Insurance Agency (Or Book Only)

Asking Price:$7,000,000

Cash Flow:$1,350,000

Gross Revenue:$1,600,000





$1.6MM Commission Preferred California Insurance Agency (Or Book Only)

Get Financing Save Print Share Valuation Report

Business Description

$1.6MM Commission Preferred California Insurance Agency (Or Book Only)

Asking price is only valid for transactions that close by July 1.

Once in a generation acquisition target for a large insurance agency or well capitalized private party looking for a long term cash flow / ROI play. Retention rates in the 90's, loss ratios in the 60's across the entire book and all carriers. Heavily concentrated in one carrier with a commission rate of 14.5%, primarily P&C personal auto, with about 10% home and <1% commercial. This is the satellite office of a large agency that grosses $4MM total.

There are two golden geese in this acquisition: 1) This is a cross sellers paradise. Here lies a pool of 6,500+ health insurance cases, life insurance cases, annuities/AUM type targets, commercial accounts/business owners, the sky is the limit. Assuming only 10% penetration you have an additional 600+ customers ACROSS EACH DIVISION!! Maybe more is possible, depends on the acquiring entity. 2) Seller is a master at operations management and extracts an industry best production and net income level on a per employee basis. Sprinkle some of that secret sauce into your organization, and consider how much more profitable would you be if you were running at ~$400k in revenue per staff member??? That IP alone is worth the price, let alone the book of business, future commissions, and cross sale empire to secure.

Please dial Extension 628 if you decide to call us at (800) 985-4939 so you are routed properly! Thanks!!

Opportunity exists to purchase the entire agency for $24MM. NDA is required for comprehensive 22 page Confidential Information Memorandum crafted by Ace Business Brokers.

Detailed Information

Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Single office acquisition target. Easy lease to absorb or get out of. Clients have been trained to be serviced and supported remotely, 99% direct bill, very few clients visit the subject locations to make payments. Ideal roll up or take over as-is per Buyer preference.
Insurance is a very competitive industry, but this Agency has weathered the various upturns and downturns due to its impressive size and retention metrics.
Growth & Expansion:
A cross selling paradise. Round this out for another million or two in revenue upside if the right Buyer is strong in other lines.
$5MM Cash Down - $2.0MM Carry @ 0% Over 3 Years! Discount available for all cash deal
Support & Training:
All employees will stay. Seller will stay for as long as needed per Buyer request and subject to mutual negotiation of a long term satisfactory consulting/employment arrangement.
Reason for Selling:
Liquidity event for Seller.

Listing Statistics for Premium Members

Ad#:1263902 Report an issue with this listing

The information in this listing has been provided by the business seller or representative stated above. BizBuySell has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness.
Read BizBuySell's terms & conditions before responding to any ad.

Contact the Seller

(from currently available funds)
Sign up for the BuyerNewsletter.
Learn to use your IRA/401K to buy a business: Guidant Financial (min. $50K needed in IRA/401K)
Contact Seller Loading

Rick Carlson

Business Listed By:
Rick Carlson

Ace Business Brokers

Show Phone Number

View My Listings

Find out more...

Get more details about this business.

Similar Listings

You Move Me

Franchise Opportunity
Capital Required: $104,000