Allstate Insurance Agency Serving a Growing Market

Omaha, NE (Douglas County)

Seller Financing Available
Allstate Insurance Agency Serving a Growing Market

Asking Price:$340,000

Cash Flow:$114,545

Gross Revenue:$184,303

EBITDA:N/A

FF&E:$7,500

Inventory:N/A

Established:2012

Allstate Insurance Agency Serving a Growing Market

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Business Description

With a location which has served Allstate clients for 45 years, this Agency is an extremely lucrative business. Being in the Top 2 zip codes relating to Allstate rates, the business is growing continuously. Many benefits are available to a new Allstate Agent including an Executive Advantage Program, which can cover 50-75% of direct mailing marketing cost and give the owner an additional $7,000 for marketing. One further opportunity is an enhanced commission program which would give a new owner an enhanced commission bonus starting at 35% for the first 4 years to help offset debt payments.

This Allstate Agency serves a prime market in Omaha which is expecting major growth in the next 5-10 years. The insurance policies are split 90% Home and Auto, 5% Business, and 5% Life/Retirement. With two well qualified 1099 employees, clients know that they will be taken care of. One employee is an insurance agent with 45 years of experience. The other employee is primarily responsible for sales. Of 2015’s $184,303 in sales, 65% ($120,000) were annual renewals of previously held policies.

The seller is looking to devote more time to his family and wishes to use this money to invest in other areas. He currently runs this agency from a distance, only investing time in an administrative capacity and when policy holders require his assistance. Growth opportunities are present for a new owner by adding agents to take advantage of the enhanced commission by expanding the business.

A down payment of $42,500 will yield a buyer a $61,427 Profit (NOI) in the first year, which is a 144% return on the initial investment. With the generous programs from Allstate, there is potential for profits to be greater.

Financial Overview
List Price: $340,000
Gross Sales
2015: $184,303
65% policy renewals
35% new policies

Owner Profit/Cash Flow
2015: $114,545
Profit Margin: 62%

Multiple: 2.1*This is an industry standard multiple
Valuation: 2015 Revenue x Multiple = Price
$184,303 x 2.1 = $387,036

*Industry standards dictate that valuations of Allstate agencies use revenue and a multiple of 2.1 to determine the list price. This is due to consistently high profit margins for Allstate agencies in comparison to independent agencies.

Assets Included in Purchase: $7,500
Equipment: $7,500: 2 Desks, 2 Desk Chairs, 4 Client Chairs, 2 Laptops, 2 Printers, and Other Office Supplies ($7,500*)

Intangible Assets: Located in a growing area of Omaha with many highly qualified homeowners seeking insurance, Allstate rates for home and auto insurance in this zip code are among the best in Nebraska

*amounts may vary

Attached Documents


Detailed Information

Employees:
2
Furniture, Fixtures, & Equipment (FF&E):
Included in asking price
Facilities:
Year Established: Under Current Owner Since 2012, Location has Served Allstate Clients for 45 Years Location: Omaha, Nebraska – Located in Top 2 Zip Code relating to Allstate Rates Service Area: Nebraska and Iowa Demographics: Policies holders span a range of age groups Lease: 822 sq/ft at $1,089/month [enough space for 5-6 staff]
Growth & Expansion:
Growth Opportunities: Hire Callers to Expand Client Base; Expand Agency to Take Advantage of Enhanced Commission
Financing:
12.5%
Support & Training:
Seller Training Period: 90 Days
Reason for Selling:
The Seller is investing money elsewhere and wants to spend time with family

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Cortney Sells

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Cortney Sells

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