Appraising. Book of Business

I have a good book of Individal Health. My revenue has doubled in the past 12 months and will double again in the next 12 months. Just hired a former nurse to help me enroll clients in plans.

My focus are 1 man self employed businesses in the Seattle area.

1. A core focus should be the "Growth Rate" for a book. If it is stable or declining it should have a lower multiple.

2. However for w growing business with leads just flowing in should have a significantly higher multiple. No matter what lines of coverage.

3. Go with your "gut feeling" if you feel like it's the right thing to do it will be. If not just walk away.
 
Just as a quick example, Farmers pays its own agencies an exit price of 1 x one year commissions, and Allstate pays their own agencies 1.5. For you to pay much over that, could be overpaying, unless there are some unusual factors.
 

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