- Thread starter
- #11
Because they do 90% standard auto and commercial, this agency is 3 times renewals.
Agency Acquisition Financing
- Thread starter saieddie
- Start date
- 4,096
Sounds like a good deal to me. Even if you have to put down 20% you would have the note paid off in 3 years if you keep all the business.
Did you already have a relationship with the agency or did you find it?
I don't follow that stuff, but I did not know Brooke was in Chap 11.
I am also not a P&C agent but I would be cautious about paying 3x for a block of business. If there was an out if a carrier decides to non-renew their business in the state it might be more palatable.
I have buddies who have been P&C agents for years and complain about carriers here today, gone tomorrow. They also speak of the squeeze the carriers put on you to commit to placing $X in premium before they give you a pen.
P&C markets seem to ride the soft market, hard market cycle more than others. This may be more apparent in the commercial lines side vs. personal lines but it isn't all roses.
As far as financing, I get solicitations from time to time from folks who are willing to factor my renewals and give me a check for the income stream. If they do it for health they probably do it for P&C as well.
I am also not a P&C agent but I would be cautious about paying 3x for a block of business. If there was an out if a carrier decides to non-renew their business in the state it might be more palatable.
I have buddies who have been P&C agents for years and complain about carriers here today, gone tomorrow. They also speak of the squeeze the carriers put on you to commit to placing $X in premium before they give you a pen.
P&C markets seem to ride the soft market, hard market cycle more than others. This may be more apparent in the commercial lines side vs. personal lines but it isn't all roses.
As far as financing, I get solicitations from time to time from folks who are willing to factor my renewals and give me a check for the income stream. If they do it for health they probably do it for P&C as well.
- 9,744
Harkening back to my Allstate days, that sounds pretty stiff for an all cash deal. Maybe if you got favorable terms...
Moonlight, did you have any problems whe leaving Allstate? Have you found you are as or more succesful as an ndependant? I have been at Allstate and have built a 1.2 million agency in 2 years. I keep thinking how much moe successful I could be retaining and writing more business with more than one carrier.
- 9,744
Rhino, I worked on the financial products side, so I may not be the best p&c opinion, but I would think being independent would give so much more flexibility...
Nice book you've built!
Nice book you've built!
You need to get pre-approved with the carriers first. YOU MUST. P&C is a lot different than life & health. You have mostly life & health people on this board.
It is VERY difficult to get approved P&C as a GA. The companies can walk with the business the day after you take over. They don't have to approve you. You may pay $250K for nothing more than a list of names.
- Thread starter
- #18
Thanks. I've got the appointment process covered. I won't buy this agency w/out getting appointed by the main carrier first.
I've had a relationship w/this agency for more than 10 years referring business back and forth. Its a great fit if can find some financing.
I've had a relationship w/this agency for more than 10 years referring business back and forth. Its a great fit if can find some financing.
- Thread starter
- #19
I don't reply to my own posts often, but I wanted to mention another lender I found. Oak Street Funding does smaller loans. I talked to Insurbanc and they're mostly looking for books over $2 million.
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