$3,500,000.00
Asking Price
Address: Irvine, 92616.
Status: Active
Posting ID: 288910
10/13/24
Description
This 16-year-old commercial-focused agency was started by an individual who brought in a partner in 2012 to manage and develop the Property and Casualty division. This division grew from $600,000 in Premium to $6,500,000, more than 1,500 policies, and nearly $875,000 in annual commissions and fees.
Contractors are the Agency’s Commercial Market niche, representing 65% of their Commercial policies. These include General Liability, Excess Liability, Commercial Auto, and Worker’s Comp.
Personal Lines account for 35% of the policies.
Several top carriers are offered via the Smart Choice Cluster which accounts for $1.8M of total premium. The ability to transfer the cluster relationship to a Buyer is pre-approved. This means potential Buyers do not require existing appointments with Mercury, Travelers, Liberty Mutual, Guard, and others. The contract fee is grandfathered in which is subtracted from monthly commissions. Income reports reflect this expense. There is nothing extra to be paid.
The Seller currently manages all aspects of the Business including administrative roles (payroll, invoicing, audits, agency staff hiring, training, and management) and all accounting and financial tasks including customer payments, carrier payments, QuickBooks, etc.
The Seller personally manages $4M in commercial premiums with the help of one assistant account manager and one part-time commercial account manager. She also assists the Personal Lines Account Manager as needed to place business, and set up new appointments. Those accounts bring in $2M in premiums.
NDA is required to secure the comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
Detailed Information
Facilities: Operations are based in a professional office complex. The lease runs through December and may be extended should a buyer benefit from the central OC location.
Competition: Commercial Insurance is competitive, but they are experts in their specialty niche and business is growing.
Growth & Expansion: Suggestions include researching other related niches and cross-selling other insurance options.
Maintain Referral Partners to include Lenders, Captive Agents, Property management Companies, customer referrals, etc. who refer a significant amount of Business.
Financing: TBD if the structure and terms are acceptable.
Support & Training: To ensure a smooth transition and ongoing success the Sellers will work with a Buyer to determine what support is needed. The managing partner is hoping to stay on as a producer and continue managing her accounts.
Reason for Selling: The founder; senior partner is ready to retire.
To get more information about this Independent Commercial Agency - Outstanding business for sale in Irvine please phone Rick Carlson (Agent - BRE License #:01820673) at 833-776-6682 and -- - if you get voicemail please leave a detailed message - make sure you mention you saw this posting/ad #288910 on BizBen.com. In addition to phoning Rick Carlson, make sure you email Rick Carlson above to get more info about this Independent Commercial Agency - Outstanding, to ask any questions or request an appointment to see this business for sale. Thank you. License # 01820673. ProNova Partners.
Contact
Details
Asking Price: $3,500,000.00
Down: Call/Email
Cash Flow: $466,000.00
Revenue: $875,000.00
Area: Irvine
City: Irvine
Attributes:
My Notes About This Listing