Reliance Global Signs LOI to Sell Fortman Insurance for $5M Cash

Reliance Global Group, Inc. has signed a non-binding Letter of Intent to sell its wholly owned subsidiary, Fortman Insurance Agency, for $5 million in cash, representing a premium over the original acquisition cost. Since acquiring Fortman, Reliance has improved operations, upgraded internal systems, and strengthened leadership, transforming it into a well-capitalized and efficiently run agency with a growing customer base. CEO Ezra Beyman emphasized that the sale reflects a disciplined capital allocation strategy and positions the company to realize meaningful returns while enhancing shareholder value. The proceeds from the sale are intended to support Reliance's planned acquisition of Spetner Associates, a rapidly growing insurance platform expected to generate strong cash flow and fit well within the company's OneFirm strategy. This strategic move aims to bolster cash reserves and accelerate growth, despite Reliance managing notable debt and operational metrics that suggest room for improvement. The transaction remains subject to customary due diligence and the negotiation of definitive documentation.