Hey all,
I am currently working with/for a digital marketing agency that helps life insurance agents sell anywhere from 3-5M in annuities per year. We are currently working with about 20 agents and over the next year plan to scale to a point where our marketing campaigns are directly responsible for producing over 100M in annuity sales. If possible, ideally over the next few years we'd get that up as high as possible (250-500M).
Obviously our company has value to a private equity firm in terms of the net monthly cash flow we are able to generate from the marketing fees we collect from our clients, but I am curious if there is enterprise value to an IMO or carrier (aka could we possibly sell this marketing company directly to a carrier or IMO) based off the gross commissions we help our clients produce.
My thinking is, if our campaigns can produce 100M in annuity sales (or 5-7M commissions) for individual producers, if we were to partner with or get bought out by an IMO/carrier, all they'd have to do is plug in their agents (with a multiple year existing track record of successfully selling annuities) into our existing marketing infrastructure (advertising/marketing campaigns and assets, exact numbers on cost per lead, close rate, sales length, customer acquisition cost, LTV of a customer, etc.)
He who controls the leads controls the sales. Anyone with experience with company acquisitions I would greatly appreciate some feedback (feel free to reach out directly), we are very good at the marketing but the M&A/private equity side of things I have no background experience with.
I am currently working with/for a digital marketing agency that helps life insurance agents sell anywhere from 3-5M in annuities per year. We are currently working with about 20 agents and over the next year plan to scale to a point where our marketing campaigns are directly responsible for producing over 100M in annuity sales. If possible, ideally over the next few years we'd get that up as high as possible (250-500M).
Obviously our company has value to a private equity firm in terms of the net monthly cash flow we are able to generate from the marketing fees we collect from our clients, but I am curious if there is enterprise value to an IMO or carrier (aka could we possibly sell this marketing company directly to a carrier or IMO) based off the gross commissions we help our clients produce.
My thinking is, if our campaigns can produce 100M in annuity sales (or 5-7M commissions) for individual producers, if we were to partner with or get bought out by an IMO/carrier, all they'd have to do is plug in their agents (with a multiple year existing track record of successfully selling annuities) into our existing marketing infrastructure (advertising/marketing campaigns and assets, exact numbers on cost per lead, close rate, sales length, customer acquisition cost, LTV of a customer, etc.)
He who controls the leads controls the sales. Anyone with experience with company acquisitions I would greatly appreciate some feedback (feel free to reach out directly), we are very good at the marketing but the M&A/private equity side of things I have no background experience with.
