Allstate Management Monthly

Volume II, Issue IX   


Greetings!

 

Welcome to the February edition of Allstate Management Monthly!  Featured in this month's newsletter you will find a regional analysis of PPCLOAN's closings for 2010 versus 2011.  Please contact us with any questions as we would love to help you.  Thanks Allstate management!

Customer Testimonial
Regional
Closings
Deal Highlights
Deal
Highlights
Quote of the
Month
Resources
Resources

Archives
Archives

Loan Program
Loan
Program



CustomerCustomer Testimonial

"I would definitely recommend PPCLOAN for an agency purchase.  They were a pleasure to work with and made things so simple.  Everyone that I worked with was very helpful and made my experience one that would encourage me to use them again as well as refer them to others.  You won't go wrong if you choose to work with PPCLOAN!" 
 
Pam Nichols 
Midland, TX 
Closing2011 Allstate Loan Closings by Region

 

As one can see in the chart above, the majority of Allstate's regions witnessed a similar amount of closings in 2011 as in 2010.  However, several regions did realize some decline which can be attributed to a number of factors, including changes in agent deployment goals in each of Allstate's 14 regions.  We already have a strong pipeline for loan closings through April 2012; it will be interesting to take a look at closings through June to track this year's goals per region pace. 
 
We anticipate existing agency merger transactions to be less in 2012, which puts more of an importance on being able to facilitate financing transactions for outside buyer candidates.  When reviewing the financing package of a prospective borrower, we take our time to review all aspects of the deal in an effort to structure a financing arrangement which we feel works well for all parties involved.  With no application fee, our company revenues are generated solely by loan closings; thus we have a vested interest in each candidate who applies with PPCLOAN. 
DealDeal Highlights  
 
 
Outside Buyer in MD- Purchased a $5.4M EP agency for a multiple representing 1.84 times commission revenue.  PPCLOAN provided financing for 98% of the purchase price plus working capital to cover transactional costs.  The remaining 2% of the purchase price was met by a cash injection from the Borrower.
 
Outside Buyer in Illinois- Purchased a $2M EP agency at a multiple of two times commission revenue.  PPCLOAN provided financing for 91% of the purchase price, plus working capital to cover transactional costs.  The remaining balance of the purchase price was met by a cash injection by the borrower. 
 
Outside Buyer in Texas-  Purchased and merged two agency locations totaling $4.6M EP for a multiple representing 2.38 times commission revenue.  PPCLOAN provided financing for 89% of the purchase price, plus working capital for transactional costs (PPCLOAN financed an overall multiple of 2.17 times commission revenue).  The remaining balance of the total purchase price was met by a $25,000 cash injection by the Borrower and a $100,000 seller note. 
 
Existing Agent in Idaho- Merged existing book of business with a $1M EP Agency (the purchase price of the agency represented a multiple of 1.93 times commission revenue).  PPCLOAN provided financing for 75% of the purchase price of the agency, plus an additional $510,000 to refinance existing agency debt and for working capital and transactional costs.  The remaining balance of the purchase price was met by a seller note, without any cash down from the Borrower. 
QuoteQuote of the Month

"Life is like riding a bicycle.  To keep your balance, you must keep moving."
                                                                                        -Albert Einstein
 
As we move well into the first quarter, this quote from Mr. Einstein can encourage Allstate agents to continue to move and look toward the goal ahead.  The only way for an agent to stay afloat is for them to continue to push forward day in and day out; if they stop, they are sure to topple over. 
ResourcesR
esources


*Allstate Agency Value Index- Our COO, Paul Clarke published his most recent segment of the Allstate Agency Value Index which explores agency values in a changing environment and how variable compensation has been a substantial consideration in setting agency purchase prices.  Sign up here to read the full article and have access to our interactive tools comparing regional and national average purchase prices.

AllstateForSale.com
- Direct your agents to this free online listing of agencies if they are looking to buy, or just get an idea of what agencies in their area are selling for.

Knowledge Center
- Our highly interactive Knowledge Center provides presentations, informative articles, agency value index and financial tools.