Buying Ins.agency.est <span title="comm.$290,000;$217,000broker">comm.$290,000;$217,000bro...</span> $75,000 agency.what is fairprice to offer?

Question

Buying Ins.agency.est comm.$290,000;$217,000bro... $75,000 agency.what is fairprice to offer?

Answer 1

3 - 5 years commissions, depending on profitibility and contingencies.

Answer 2

Rules of thumb are nice but aren&#039;t enough to get financing.  Here&#039;s an article my friend Ernesto wrote about this topic: http://www.insuranceyak.com/agency-purch...

I would also keep in mind your own experience in the bid.  In other words, over-valuing your own expertise and the confidence that ensues may result in a bid that is too high.

Answer 3

What ever you believe to be fair.  For example, the ownership clause in a Primerica RVP contract says they can sell the business to the company or to another RVP for 8-10 times their current yearly payout.

If the broker has had years of growth, I would be surprised if they accepted less than 1 - 1.5 million for it.