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Allstate Management Monthly
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Volume III, Issue I
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Greetings!
Welcome to the April 2012 edition of Allstate Management Monthly. In this issue you will find our featured article "Who Has the Greener Grass?" which compares Allstate, State Farm and Independent ownership opportunities; the testimonial of the month; an insight on a Borrower's wage requirement in determining the loan amount; and highlights regarding our Allstate Lending Program. We are very thankful for all of the Allstate managers! Please call us at any time (800.456.2779) with any questions or concerns.
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 | Who Has the
Greener Grass
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 | Customer
Testimonial
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 | Deal
Highlights |
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 | Banker
Insight
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 | Lending Program
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 | Resources
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 | Archives
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 Who Has the Greener Grass?
At a gathering of insurance professionals there would likely be as many answers to this question as there are agents in the room. This because to some degree comparing the ownership demands, overhead structure, profitability, risks, opportunities, etc. of owning an independent agency, an Allstate agency, and a State Farm agency is very much like comparing apples and oranges. Just as the old saying "America and Britain are two countries separated by a common language," so too are these various venues for insurance agency ownership separated by a common product.
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Customer Testimonial
"I have been dealing with PPCLOAN for over 10 years. They have, in every instance, performed at the highest professional level. Whether for my own acquisition loans, lending to family, or providing funding for agents I have referred to them, I have encountered the absolute best service, communication and execution. There is a reason they have provided funding for more Allstate transactions than any other company- and that, quite simply, is that they are the best."
Christopher Burke Lynchburg, VA |
Deal Highlights
Outside Buyer in Illinois- Purchased and merged three agencies totaling $6.8M in annual earned premium for $1.7M. PPCLOAN was able to provide $1.5M (2.26 times commission revenue) for purchase of the agencies with the remaining balance of the combined purchase price met via a cash contribution by the buyer.
Outside Buyer in Georgia- Purchased and merged two agencies totaling $3.5M in annual earned premium for $830,000. PPCLOAN was able to provide $735,000 (2.1 times annual commission revenue) for purchase of the agencies with the remaining balance of the combined purchase price met via cash contribution by the buyer.Outside Buyer in Kentucky- Purchased and merged two agencies totaling $5.2M in annual earned premium for $1.45M. PPCLOAN was able to provide $1.1M for purchase of the agencies (2.15 times annual commission revenue) with the remaining balance of the combined purchase price met via a subordinate seller note.
Existing Agent in Texas- Purchased an agency with $2.2M annual earned premium base and maintained the location as a satellite office. PPCLOAN was able to provide 100% financing for the $450,000 purchase price, plus additional funds to cover any associated transactional costs.
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Banker Insight
A potential borrower's wage requirement is a major factor in determining a loan amount as it is calculated based on the amount of cash flow remaining after the overhead and the owners wages have been paid. A borrower with living needs of $60,000 will qualify for a much larger loan than a borrower with living needs of $120,000, all other things equal.
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Allstate Lending Program
No down payment requirements
Pre-payments without penalty
Loans up to 2.5x combined Renewal Commission
Up to 12 year fixed-rate loans
Free consultation with Allstate Specialists
- Qualifying Characteristics
Relevant experience
650+ credit score
Displays financial prudency
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Resources
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.
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