Who is Buying Insurance Agencies?

[AgencyEquity]

Here are the most common type of Agencies looking to make an acquisition:

1. National Agencies - These are agencies that have offices and do business in nearly every states and are aggressively acquiring agencies that meet their criteria.
2. National Wholesalers - This includes MGA and Surplus Lines Broker who place or underwrite business for retail agencies, there are small handful of players who are looking to aggressively grow.
3. Regional Agencies - These are agencies that have offices and operate in one large state or several states, these agencies want to grow and are aggressively looking.
4. Local Agencies - These are small to medium size agencies that have 1 to 3 offices, usually within a state, these agencies are looking to grow within their territory.
5. Small Agencies - These are smaller agencies looking to grow, mostly in their local area. They are not as aggressive as their medium to large counterparts, but they may make a good fit for a smaller local agency.

Strategic buyers have detailed plans, they are funded or have funding sources in place and know exactly what type of an agency they want. These agencies are ready to make an acquisition, they know how to do it, and have procedures in place to make their targeted acquisition. It’s very common for these agencies to pay a premium for the agency type they are targeting. This is good news for sellers as there are a good number of qualified buyers ready to make an acquisition. Now is an excellent time to sell your agency if you intend to sell, the buyers are clearly out of the woodwork and cash ready.