How much to buy an established insurance agency? For example Farmers or AllState

[khabosha]

Seems to be just a slew of Allstate and Farmers agency's for sale out there. Most of the agents being pushed out and under extreme pressure to hit the numbers or leave.

If you buy it you will have to drink the corporate koolaid. Like Allen said, you'll be limited to high priced policy to sell in a super competitive market. Plus being limited to just one company and under pressure to produce or else is not fun.

P&C agency values are determined by gross revenue. A 2-3 times multiple is common for a preferred, high retention Indy book. As for a Captives book, don't know.

Since your new in this business, you would be crazy to blindly buy. Go work for an agency and see if you even like this shi*y great business first.

Man it seems like you’re the only one that understood me. Thank you so much. One question though, for like $80k isn’t it worth buying it? Monthly feels are no more than $1300 that includes office rental, utilities and all the rest of the fees....?

 

[khabosha]

A guy I know was in line to inherit the Budweiser distributor here in Philly. But Yeungling really ate into the market share and his father blamed it on him, so his dad got mad and fired him. But dad did give him 150k to buy an Allstate agency which wasn't in the best neighborhood.
But the company constantly feeds him leads and he worked at it. He's doing great. What this agency is worth I don't know. But my point is that you can have a nice business with one of these deals. Just do your homework!

That’s exactly what my situation is!! When he bought that Allstate agency, was it already established with at least 500 clients ?

 

[PA Bill]

That’s exactly what my situation is!! When he bought that Allstate agency, was it already established with at least 500 clients ?

I don't know the exact details, but we're in a very large city. So probably? I just know I've seen this work real well for someone I know. But I guess the numbers have to make sense. Is there a local agent you know and trust that can advise you? Good luck!