Allstate Insurance Agency For Sale with Highly Qualified Client Base

7178

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

Training/Support:

90 Days

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.