Not to be outdone by significant consolidation in such sectors as retail,
healthcare, technology and other
areas, the insurance industry may
also see the convergence of a
record number of consolidations,
transactions and mergers in 2012.
It is still quite early in the year
for strong predictions, but Oak
Street Funding is financing more
commercial loans than during this
time last year. As we talk with all
types of agents across the country,
the conversations we hear point
to key reasons behind the flurry of
activity and why agency mergers
and acquisitions may peak this
year.
Retirement plans — It’s no secret
that most agents have reached
retirement or near-retirement
age. These owners are always
mindful of exiting the insurance
agency business. While many
were already in the process of
working out plans to retire in the
next few years, others resisted the
temptation to sell during the soft
market years. Now, however, they
believe 2012 may be the highly-
anticipated year as the market
hardens. These agency owners
have prepared their businesses
for such a time as this and have
worked to ensure a decent agency
value with fundamental financials,
solid management and strong sales
performance.
TAKING YOU WHERE BANKS WON’T.
a big push to get their agencies
sold before 2013.
Growing optimism —In February,
financial markets performed well,
unemployment claims reached
their lowest since 2008 and new
home construction increased.
These are some of the economic
growth signs that are encouraging
Rick Dennen, President and
CEO of Oak Street Funding
agents to buy and sell, considerably
increasing the supply and demand
of insurance agencies.
oakstreetfunding.com
1-866-OAK-FUND
The materials in this article are for informational purposes only. They are not offered as and do not constitute an offer for a loan, professional
or legal advice or legal opinion and should not be used as a substitute for obtaining professional or legal advice. The use of this article, including
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