Chatsworth Insurance Agency Balanced Revenue & Commercial Lines For Sale

Business description

Business Description

Seller is active owner operator who is there every day 6 days per week. Has 1 FT Spanish speaking CSR and 1 PT person as well. Writes auto, home, business work comp, some medical, and surety bonds. Breakdown is: 70% Auto Hybrid and 30% Commercial. What we mean by auto hybrid is that 40% of the Auto clients are written as some form of package deal with Home through Travelers, Fidelity, Safeco, TOPA, & McGraw. Auto only is written with Travelers, Safeco, Hartford, Infinity, Alliance, Progressive, and some other non-standard carriers when needed. Broker fees + commission totals are $200,000+ total gross revenue. Heavy on renewals, not particularly reliant on broker fees, as tax returns for 2010 report gross at $172k. Retention is strong at 83%. Broker is trying to qualify for SBA acquisition financing, so Buyers may purchase for 15% down hopefully. Production reports are not on file yet. NDA is required for exact business address.

Detailed Information

Facilities: Street front retail plaza with parking in front of the building. Has private office for owner-operator.

Competition: Heavy. There's an agency across the street, and there's one that is in the same plaza that's a captive. Tends to get a lot of business from the captive when they can't write the non-standard stuff. The competitor across the street has been there awhile and has not really made a dent into sales. Anecdotally, 2011 #'s are similar to 2010.

Growth/Expansion: Seller does a good job as-is, very diverse in terms of lines of coverage and "stickiness" with the clients they have.

Financing: As needed per SBA guidelines to close deal.

Support/Training: 2 weeks, 30 hours per week.

Reason Selling: Retirement.

Property information

Real Estate:

Lease