Insurance Agency  •  $425,000

Location: Riverside
Seller: Dave Haug
Phone: 858-391-3388

Business Summary
Executive Summary
The Business Provides Various Insurance And Financial Products To Its Clients With 75% Of The Book Of Business Being Life Insurance. The Business Was Started In June 2008 By The Seller And Wrote Its First Policy In September 2008. The Business Has Experienced Impressive Growth And It Was The Intention Of The Seller To Grow The Business Over A Period Of Years, However, Health Concerns Primarily Has Caused The Seller To Put The Business On The Market For Sale. The Strength Of The Business Has Been The Ability To Recruit Agents As Currently 16 Full Time And 14 Part Time Agents Are Writing Business. The Seller Would Consider Seller Financing Up To 60% Of The Selling Price.

Marketing Summary
Since The Business Is Only 12 Months Old The Seller Has Had The Opportunity To Do Minimal Marketing. Presently, New Clients Come Mainly From Agent Referrals. Mailers, Telemarketing, And Attending Seminars And Conventions Would Be A Logical Next Step To Expand The Business.

Strengths Summary
The Strength Of The Business Is Writing Life Insurance As This Comprises 75% Of The Book Of Business. In Addition, The Product Portfolio That The Business Has Been Able To Secure Has Given The Business A Wide Range Of Products To Market To Their Clients And Gives The Business A Competitive Edge Over Other Agencies.The Business Has Direct Billing With The Carriers They Represent, A Persistency Rate Of About 95%, A Management System In Place, And A Website.

Hours And Staffing
Office Hours Are Monday Through Friday 8 AM To 5 Pm\. The Staff Consists Of 16 Full Time Agents, 14 Part Time Agents, And A Sales Manager. All Of The Agents Are 1099 Employees Although The Sales Manager Is Guaranteed 50,000 Per Year Against Commissions Earned. The Seller Anticipates That The F/T And P/T Agents Would Stay On Under New Ownership.

Area And Facilities
The Office Is Conveniently Located Off A Major Highway And Has 4000 Sq. Ft. The Lease Expires 2/1/2010.

Company History
The Business Wrote Its First Policy In September 2008 And It Was The Seller's Vision To Grow The Business Over A Period Of Time. However, Health Concerns Primarily Caused The Seller To Change His Plans And Put The Business Up For Sale.

Financial Summary
Annualized Net Commissions To The Business For 2009 Are 306,847. As Of 7/31/2009 The Business Had Approximately 132,000 Waiting For Approval Of Underwriting.

Additional Information
For The Life Insurance Written The Business Receives 140% Commission Of The First Year Premium After The Selling Agents Commission, 2% Per Year During The Period The Policy Is In Effect, And 35% Upon Renewal Of The Policy As Long As The Persistency Rate Is 90% Or Better.