SOLD – Local Insurance Agency
A well-established locally owned insurance company that has been operating and serving the area for 15 years is now available for acquisition. This business is located in a 1,400 SF retail strip center and is conveniently located next to the intersection of two busy roads surrounded by densely populated single-family homes and many local businesses. Competition is expected for this type of business, especially in this area, as there are many low-income families in the surrounding area needing low-cost insurance, but this business has been long established and has a solid customer base that provides consistent sales. Each year, approximately 350 new applications are written and the cancellation rate is only about 30%, which is relatively low for this type of industry. This independent insurance agency offers a variety and affordable auto, home, and commercial insurance and is affiliated with several small and major insurance company carriers, such as Kemper, Progressive, and Americana Access, to provide the least inexpensive and customize the policies to meet each client’s needs. Although no marketing efforts are in place currently except by word of mouth, proactive marketing in various methods is crucial to the further growth of this business in overall cash flow and acquisition of new customers from untapped areas of the city. There are many ways to accelerate the continued growth of this business by direct mail and flyers to surrounding homes and local businesses, especially local car dealerships to acquire referrals from their clients, by being more active in a social media outlet, and extending business hours to accommodate clients who are not able to use their service during current business hours. Most importantly, being more proactive and aggressive on retaining current policyholders by following up with them before the policy expires will greatly improve sustain and grow its overall revenue. The acquisition of a well-established insurance company that operated for over 15 years will give a buyer access to a stable and considerable cash flow business with a solid customer base that can be further expanded to its full potential by proactive marketing and owner involvement.