Prize Indemnity Insurance Agency
Service businessOver 1,000 clients, mostly car dealerships, buy its cover for prize contests such as hole-in-one challenges and million-dollar shootouts, and the whole operation runs from home.
Ask $2.6M · Profit $572K · 4.5x · DealStream
Oct 29
- Ask
- $2.6M
- Revenue
- $888K
- Profit
- $572K
- Margin
- 64%
- Multiple
- 4.5x
- Age
- ~9 yrs (9-year-old)
- Label
- Worth Studying
- Reason
- 9 years old with a 64% margin, but it keeps some prize risk on its own books and the listing gives no figures on that exposure.
Why it's interesting
- Over 1,000 active clients across the US, mostly auto dealerships plus corporate marketers and charity golf tournaments, so no single account appears to carry the business.
- Fully digital: a cloud CRM and policy-binding software, work-from-home staff, relocatable from Pinellas County, Florida, and management is staying on.
- The retiring founders offer a database handover and warm introductions, and seller financing is available on request.
What to watch
- Besides carrier commissions, the firm selectively underwrites some prizes itself. One large payout on a million-dollar shootout could erase a year's profit, and no claims history or reserves are shown.
- Income depends on international underwriting carriers; whether those agreements, and any insurance licences, pass to a new owner is not stated.
- Most clients are car dealers, so revenue likely tracks dealership promotion budgets, which tend to shrink when car sales slow.
- The $888K sales and $572K cash flow come with no period or year-by-year trend, so it is unclear whether the business is growing or shrinking.
Who it fits
A buyer with insurance or specialty-risk experience, $2.6M of capital and a cash reserve to cover any self-underwritten claims.
Ask the seller
- What share of profit comes from self-underwritten policies rather than carrier commissions, and what prizes has the firm paid out in 9 years?
- Do the carrier agreements and required licences transfer with the sale, or must a buyer requalify?
- Who exactly is the management that will stay, given both founders are retiring?
Growth plays
- Offer the same sales-event prize cover to RV, boat and powersports dealers, who run promotions much like the car dealers already on the books.
- Partner with charity golf tournament registration platforms to sell hole-in-one cover at sign-up.
Oct 29Added to Acumen Wire