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Asking Price$387,000
Revenue | $184,303 |
Established | 1971 |
Cash Flow | $114,545 |
Employees | Undisclosed |
FF&E | $7,500* |
Franchise | No |
Inventory | Undisclosed |
Relocatable | No |
Real Estate | Undisclosed |
Home-based | No |
* Included in Asking Price
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With an opportunity for enhanced commission for the first four years of ownership, this Allstate Insurance Agency is an extremely lucrative business. Many benefits are available to a new Allstate Agent including an Executive Advantage Program which can cover 50-75% of direct mailing marketing cost as well as 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 employees, clients know that they will be taken care of. One employee is an insurance agent with 44 years of experience. The other employee is responsible primarily for sales. Of 2015’s $184,303 in sales, $120,000 of this was 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 business.
A down payment of $48,375 will yield a buyer a $54,084 Profit (NOI) in the first year. With the generous programs from Allstate, there is potential for profits to be greater.
Other Information Reason for Selling: The Seller will use the money to invest elsewhere and desires to spend more time with family. Personnel: 4 Hours: Monday – Friday: 9AM – 6PM, Saturday: 9AM – 1PM History: Under Current Owner Since 2012, Location has Served Allstate Clients for Almost 45 Years Lease: 822 sq. ft. at $1,089/month Support to Buyer: 90 Days Seller Training Period Additional Information:
Business Information
Year Established: Under Current Owner Since 2012, Location has Served Allstate Clients for Almost 45 Years Location: Omaha, Nebraska Service Area: Nebraska and Iowa Demographics: Policies holders span a range of age groups Lease: 822 sq. ft. at $1,089/month Reason for Selling: The Seller will use the money to invest elsewhere and desires to spend more time with family. Employees: 2 - 1099 Employees, Agent with 44 years of experience handles operations and all service inquiries, Sales employee handles quotes and sales of new policies Hours: Monday – Friday: 9AM – 6PM, Saturday: 9AM – 1PM Seller Training Period: 90 Days Growth Opportunities: Hire Callers to Seek New Clients, Expand Agency to Take Advantage of Enhanced Commission Current Owner’s Responsibilities: Administrative Role, Handles Client Concerns the Staff Cannot
Financial Overview
List Price: $387,000
Gross Sales 2015: $184,303
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: 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
Funding Example
Purchase Price: $387,000 12.5% Buyer Down Payment: $48,375 12.5% Seller Financing: $48,375 75% Bank Loan: $290,250
After all Debt Service is paid a new owner can expect to have a Net Operation Income (Profit) of $54,084.
Facilities: | 822 sq. ft. at $1,089/month |
Growth Potential: | Hire Callers to Seek New Clients, Expand Agency to Take Advantage of Enhanced Commission |
Seller Financing: | 12.5% Seller Financing: $48,375 |
Sale Reason: | The Seller will use the money to invest elsewhere and desires to spend more time with family. |
Ad #80930
Seller Reference #PRO008
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