Insurance Agency Acquires Rival with Just-In-Time Acquisition Loan.
Background: A P&C agency started in 1982 and located in the suburbs of Chicago, IL is looking to acquire a local agency to continue their controlled growth plans. The acquisition will nearly double their revenues to $1.6 million in commissionable revenue.
Funding Constraints: In a competitive market, the Seller had numerous offers including one on more favorable terms. The Buyer wanted to use speed and certainty of close to win the deal, however intended to use an SBA loan. While SBA financing is attractive, the proceeds were insufficient and timeline (typically 90-105 days) was too slow. The agency was going to lose the transaction! That’s when the acquiring agent contacted Super G Funding for a loan that would fund the purchase price and close in time.
Solution: Super G Funding proposed our new Jumbo, Prime Plus Loan to facilitate the quick close and secure the purchase. After receiving both party’s documentation, Super G was able to quickly get comfortable with the Company’s operating history, commission and renewal income and growth opportunities. Super G was able to close their $1.3 million loan in just 11 days with a custom structured solution and repayment plan. 6 months after the close, Super G helped the agency with getting a traditional longer term bank financing.
Super G’s Jumbo, Prime Plus is a medium term loan product designed specifically for agents to quickly acquire additional agencies. The product is often a bridge to longer term growth, conventional lending. Our insurance loan product provides the flexibility needed for today’s agencies to grow their revenue streams, non-organically, resulting in strong, established growth.
About Super G: Super G Funding is an alternative lender with over $100 mm in committed capital specializing in lending to the Insurance Industry. Our mission is to fill the credit void in the lower middle market by providing non-dilutive, senior and subordinated debt solutions to insurance agencies in need of financing for working capital, growth capital, acquisition capital, or special situation financing. We lend up to $5 mm per transaction in the form of a specially structured amortizing term loan. We are a small, but nimble team and highly responsive. We have over 100+ borrowers around the country and are able to give quick responses and close deals rapidly.