As we enter the second half of 2014, PPCLOAN is more prepared than ever to accept and approve loan packages for individuals looking to purchase Allstate Insurance agencies. The Second Quarter Allstate Agency Value Index is set to be released this month and it will feature the most recent price trends for Allstate agencies being sold across the country.
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Value Index Sneak Peak
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2nd Quarter 2014
The average price multiple for Allstate agencies relative to commission income increased for each size category from the first to second quarter in 2014. This is due primarily to 1) increased demand as more existing agency owners, who can typically offer a higher purchase price than outside buyer, purchased additional agencies than last quarter (up from 10% of agency sales to 26%), and 2) an increased number of split book purchases which qualify for ADB, resulting in buyers being willing to pay a premium for the agency.
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DEAL HIGHLIGHT
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An Outside Buyer in New York
PPCLOAN received a rushed loan request to purchase a $2.54M earned premium Allstate agency and was able to secure a formal loan approval one business day after receiving the full loan package. The purchase price of the agency was $575,000 and PPCLOAN secured a loan for 100% of the purchase price in addition to working capital.
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Quote of the Month
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"Hard work beats talent when talent doesn't work hard."
Some may "rest on their laurels" of talent, thinking that their endowed gifts will bring success in their life. However, while they take it easy and forgo hard work, the less talented run by them through the means of hard work. Diligent hard work pays dividends and often takes individuals to heights beyond their more talented counterparts.
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