ladyofinsurance
New Member
- 4
Like many before me, I've enjoyed months and months of trolling and learning various topics and an opportunity has become available that I have not found a good answer to...I'm experienced - about 17 yrs now with success in 2 ind agencies not quite 9 years each p&c and life (limited health), as well as agency management/operations - so long story short it's my turn because like everyone else...
I'm certain I can do it better
There is a BOB for sale - either as an asset purchase or I can do the agency, book, tangible assets etc... very "open" in terms of possibilities at this point. Everything I've been looking for in my next career change fits (I've had an ops plan, biz plan, strategy, and loan docs ready for 2 years until I could find exactly what I was looking for)
It has... the location I am after, book size (small), good mix of 55%pl, 45%cl, the cl is mostly preferred with some small "dad&son" contracting that one of the carriers is very successful in (but retentions could be low or high maintenance)...overall retention has stayed in low 90% range and has been steady for last 3 years with minimal growth (pending retirement and no csr's will do that to ya!)... 30% LR, no staff, carrier appointments will transfer to me easily and are competitive in the area...owner is retiring and moving out of state. No National carriers but large regionals and some state specific ones - I'm confident I can get two direct appointments with a national after closing due to past relationships if I determine I need that.
Sounds too good to be true to me... So I worry that I am MISSING some key fact in this early stage of due diligence. It has not been advertised yet so thanks to a friend-of-friend-of-a-friend situation I'm getting the opportunity ahead of the masses I believe. I'm now second guessing that I should hire an M&A company to assist me so that I'm not blinded by what fits into my little planning package so tidy.
At what point though is the M&A too much for such a small purchase? Are there ones that you can recommend that cater to the smaller acquisitions? We are some where around the 100-150k purchase price (I have not done the letter of intent yet to secure copies of all financials so EBITAD and such I don't have yet to share.) My best guess is that the initial price points were based on the 2x's revenue assumption by the seller.
I have some liquid assets (probably about 50-60k) for investment and would need to finance the rest - but with my credit score, resume, the current book performance as reported thus far I don't think that will be a concern. (pretty sure owner does not want to finance but have not out right asked as of yet). I want to hit this pretty fast since I'm ahead of the listing going on the internet but at the same time...even on a small book I need to do it wisely...
Ok - let me have it... lessons learned from anyone?
I'm certain I can do it better
There is a BOB for sale - either as an asset purchase or I can do the agency, book, tangible assets etc... very "open" in terms of possibilities at this point. Everything I've been looking for in my next career change fits (I've had an ops plan, biz plan, strategy, and loan docs ready for 2 years until I could find exactly what I was looking for)
It has... the location I am after, book size (small), good mix of 55%pl, 45%cl, the cl is mostly preferred with some small "dad&son" contracting that one of the carriers is very successful in (but retentions could be low or high maintenance)...overall retention has stayed in low 90% range and has been steady for last 3 years with minimal growth (pending retirement and no csr's will do that to ya!)... 30% LR, no staff, carrier appointments will transfer to me easily and are competitive in the area...owner is retiring and moving out of state. No National carriers but large regionals and some state specific ones - I'm confident I can get two direct appointments with a national after closing due to past relationships if I determine I need that.
Sounds too good to be true to me... So I worry that I am MISSING some key fact in this early stage of due diligence. It has not been advertised yet so thanks to a friend-of-friend-of-a-friend situation I'm getting the opportunity ahead of the masses I believe. I'm now second guessing that I should hire an M&A company to assist me so that I'm not blinded by what fits into my little planning package so tidy.
At what point though is the M&A too much for such a small purchase? Are there ones that you can recommend that cater to the smaller acquisitions? We are some where around the 100-150k purchase price (I have not done the letter of intent yet to secure copies of all financials so EBITAD and such I don't have yet to share.) My best guess is that the initial price points were based on the 2x's revenue assumption by the seller.
I have some liquid assets (probably about 50-60k) for investment and would need to finance the rest - but with my credit score, resume, the current book performance as reported thus far I don't think that will be a concern. (pretty sure owner does not want to finance but have not out right asked as of yet). I want to hit this pretty fast since I'm ahead of the listing going on the internet but at the same time...even on a small book I need to do it wisely...
Ok - let me have it... lessons learned from anyone?