Business Description

Rare opportunity to acquire a top-performing Farmers Insurance agency in one of Sacramento's most desirable areas. This long-established agency, originally founded in the early 1990s and acquired by the current owner in 2013, has delivered three consecutive years of accelerating revenue growth, culminating in 20% year-over-year growth in 2025.

The agency manages over $4.3 million in total written premium across 1,919 policies spanning Auto, Homeowners, Life, Commercial, and specialty lines. Revenue reached $578,673 in 2025, with CPA-verified Seller's Discretionary Earnings of $275,555, representing a 47.6% SDE margin.

This is not a typical captive agency. In addition to the core Farmers book, the agency operates a diversified independent brokerage platform generating approximately $100,000 in additional annual commissions across 150+ policies. This hybrid model provides meaningful revenue diversification and an established platform for continued growth.

The agency benefits from established referral relationships and a strong local reputation, driving high-quality inbound opportunities.

Retention is strong, with 100% Fire/Homeowners retention and 93% Life retention. Q1 2026 year-to-date retention was 96.87%, demonstrating continued momentum. The book added 85 new policies and a net increase of 23 policies in force through March 2026.

The agency comes staffed with four employees, including three licensed team members and one support/marketing role. Established systems and operating infrastructure are in place, providing a turnkey platform for an approved buyer.

The seller is approaching retirement and is committed to a comprehensive three-month post-close transition and training period to support continuity of client relationships, staff retention, and a successful ownership transition.

The business has received preliminary SBA lender prequalification at the full $1,350,000 asking price based on a lender review of the agency's historical financial information. The preliminary structure contemplates SBA 7(a) financing, subject to buyer qualification, lender and SBA underwriting, business valuation, Farmers approval, collateral requirements, and other customary conditions.

This acquisition is particularly well-suited for an existing Farmers agency owner seeking to expand within the applicable Farmers district. All purchasers remain subject to Farmers' licensing, geographic, district, location, and agency approval requirements.

All financials are CPA-verified. NDA and buyer qualification are required before receiving the full Confidential Information Memorandum.

Contact: Todd Eichman, Managing Partner — Transworld Business Advisors — [email protected] | 916-281-5838