$800k Written Premium..how Much is It Worth

[nyagent31]

This is a 3 year old company that wants out from the business and I need to know how much do you think will be a good offer for it. They are writing mainly commercial business with a little p&c. They are asking 120k.

 

[itstom419]

How much revenue is it generating? Retention? What carriers is it written? Does the mix fit your current carriers mix? Or will you be getting new carrier appts?

 

[nyagent31]

Making about $80k in commission not so sure about the retention and they are appointed by carriers that I can use.

 

[nyc2phi]

Making about $80k in commission not so sure about the retention and they are appointed by carriers that I can use.

Where in NY? Upstate or Down?

Why do they want to get out so bad after only 3 years?

Do they work with direct appointments or is it all brokerage?

 

[Milkman1265]

with 800k in premium and average 80k sounds like a brokerage with no direct carriers.

especially 3years in ny, i could be wrong though

 

[nyagent31]

Where in NY? Upstate or Down?

Why do they want to get out so bad after only 3 years?

Do they work with direct appointments or is it all brokerage?

Downstate and they have two or three carriers that are direct and the rest is all brokerages with MGAs. The broker is facing a serious illness that will prevent him to continue his daily operations.

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with 800k in premium and average 80k sounds like a brokerage with no direct carriers.

especially 3years in ny, i could be wrong though

They have 3 or 3 direct carriers but mainly write with brokerages.

 

[Sales71]

Downstate and they have two or three carriers that are direct and the rest is all brokerages with MGAs. The broker is facing a serious illness that will prevent him to continue his daily operations.

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They have 3 or 3 direct carriers but mainly write with brokerages.

Sounds like a fair price. Ask them if they can carry the loan for you maybe %20 down.

 

[robtmccarthy]

Curious what are your plans?
Also where'd you find the deal?

and PS, if you pass on this deal send it on over my way. I'm always interested in buying even the smaller shops in NY.

 

[nyagent31]

Curious what are your plans?
Also where'd you find the deal?

and PS, if you pass on this deal send it on over my way. I'm always interested in buying even the smaller shops in NY.

So based on what you have read so far how much would you offer?

 

[robtmccarthy]

So based on what you have read so far how much would you offer?

That would depend on a number of factors. Mostly being how close in proximity it was to my office as well as the book of business lining up with my business.

If those things were right I'd be aggressive. Good fits are hard to find.