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| Greetings! | Welcome to the April edition of Allstate Management Monthly. This year we've had the opportunity to speak with many Allstate managers at kick-off meetings around the country, and would like to thank you all for your feedback. With your help, PPCLOAN was able to approve loans for over 60 agents nationwide in the first quarter of 2011 and we look forward to continuing to assist all managers in their hiring process. In this edition of Allstate Management Monthly, we would like to offer a sneak peak to our 2011 1st Quarter Value Index which will be published soon. Also, in our Banker's Insight section, we will discuss the importance of flexibility in lending and how we can offer this value to your candidates.
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2011 1st Quarter Value Index Sneak Peak
| As a way to give back to the agency force, PPCLOAN designed the Allstate Agency Value Index to provide feedback to the market regarding the average sales price of Allstate agencies based on agency size and location.
Price changes for Allstate agencies remained fairly stable across the board for the 1st quarter of 2011 with the simple and weighted averages coming in at 2.47 and 2.34 times renewal commission, respectively. Prices for each size group (except the smallest) remained near their average as seen below:
Up to $100,000 in renewal commission 1.78X
$100,000 to $200,000 in renewal commission 2.36X
$200,000 to $300,000 in renewal commission 2.49X
$300,000 in renewal commission and up 2.73X
A detailed report concerning these trends will be released soon and can be obtained by registering here.
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| Banker Insight | "What is your down payment requirement?" We come across this questions daily and unlike other lenders, we answer with "We don't have one." Similar to Allstate, we prefer our borrowers to have liquid funds readily available for unexpected expenses (which inevitably occur). With this in mind, we strive for the most effective structure for each deal to keep the borrower protected. This includes not requiring a large down payment that could potentially deplete the borrower's liquid funds. This not only produces a safety net for the agency, but also creates overall flexibility for agency operations. For example, liquid funds can allow the agency to implement new marketing plans, hire the most qualified producer in the area, update the office according to market demands, etc. Like Allstate, we have agency growth and success as our top priority for our borrowers and liquid funds offer critical flexibility that we do not want to take away.
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Deal Highlights
| Outside Buyer in Georgia
Purchased and merged two agency locations with $2.48M combined EP for 1.73 times agency renewal commissions. PPCLOAN was able to provide funds for 100% of the purchase price.
Outside Buyer in Pennsylvania Purchased a $1.99M EP agency for 2.33 times agency renewal commissions. PPCLOAN was able to provide $390,000 toward the purchase price with the remaining balance being met by a cash injection from the buyer.
Outside Buyer in New Hampshire Purchased a $1.88M EP agency for 2.14 times agency renewal commissions. PPCLOAN was able to provide $320,000 toward the purchase price with the remaining $80,000 balance being met by a subordinate seller note.
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AllstateForSale.com
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AllstateForSale.com provides an easily accessible market place for buyers and sellers to interact. By encouraging exiting agents to list their agency, not only can potential buyers easily identify agencies for sale, but also garner an idea of the market in their area. To find updated agency listings in your area, please visit www.allstateforsale.com. With over 100 nationwide listings, AllstateForSale.com is quickly becoming a resource for agents to list and identify agencies for sale.
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CONTACT US
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Our Allstate Team is always available to assist your agents with their financing needs.
9303 New Trails Drive, Suite 375 ~ The Woodlands, TX 77381
Toll-free: 800.456.2779 | Phone: 281.419.0400 | Fax: 281.419.8309 | Email: [email protected]
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