Insurance Agency 24% New / Renewal Commission
Southern California - All Southern California
Industry: Professional Services > Other Professional Services
Please contact Rick Carlson of Ace Business Brokers at 800-985-4939 Extension 371 for further details.
I know right? 19% commission on new business and renewals. So awesome.
This contract will be a condition of any closing. Seller is top producer for this carrier in the Western United States, not surprisingly. Other appointments include Mercury (recent, less than $700k premium presently), CSE, Hillstar, Unitrin, Commerce West, Bristol West, McGraw, Progressive, GMAC, and Infinity. About $200,000 of total premium is what one would refer to as preferred clientele. The rest would qualify as non-standard. Averages $100,000 in Broker fees per year, about $450,000 in renewal commissions. A lean operation, Seller is heavily involved from dawn to dusk, regularly present during every minute of the 9-8 M-F and 9-6 Saturday that the Company is open. Has 2 non-licensed CSR, that helps the Seller run the business. Approximately 5,000 client files, with a retention rate of 85%, well above industry average. Could be a little bit more cross-sold, as the book consists of 90% Auto, 5% Commercial, 5% Home, no Health, no Life. Does bonding, and writes Mexican Insurance at 35% commissions. NDA is required for partial due diligence package and to schedule a personal meeting with the Seller once he approves your company or your inquiry if you're a private party.
Exclusive lease in plaza, no competitors can sign within the same center. Has been in same location for over 30 years.
Competition: Competition is strong for insurance, however, the goodwill associated with a business that has been at the same spot for 30 years is undeniable. Insurance agencies have come and gone but this one has stood the test of time.
Growth/Expansion: Has no real internet presence, one could purchase leads and expand the operation.
Financing: As needed per SBA guidelines to close deal.
Asking Price Range: $1.0M - $2.5M
Cash Flow Type: Sellers Discretionary Cash
Seller Financing: Yes
About The Business
Year Established: 1980
Number of Employees: 1 - 3
Current Real Estate: Leased
Property: Property For Lease
About The Sale
Management Training and Support: As needed, approximately 4 weeks, 20 hours per week.
Reason For Selling: Retirement.
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Print Listing Id: 700165892