tylerdurden11
New Member
- 2
I am a PL producer at an agency and now want to go out on my own. I am considering opening my own agency (within the network) or alternatively a true IA.
The agency owner has offered to sell my clients back to me but I am unsure how to value it.
I have read as much as I can but am hoping for some additional feedback from the forum!
My plan at the moment is, If I can get a good deal on the book I think I will stay in the network but if not I will start over elsewhere. All the clients were sourced and written (and serviced, to some extent) by me, and they have no idea who the agency owner even is.
The book is roughly 1M in premium. 50% of renewals goes to the house for servicing and the other 50% is shared between the agency owner and I.
Q: A multiplier might work to use but maybe not the best. if used, Should this be calculated based on net or gross revenue? I assume net, ie. 1M x 15% x 50% x multiplier - what multiplier? I have read 1.5 is typical for the 50/50 deal...
Is it fair/should I factor in other related costs? eg. subtracting the cost of having me as an employee going forward? Guessing its ~ 6k/year.
I realize don't have much leverage here except to leave. its not ideal to start over but also OK and when the non-compete expires I am sure I can win a big piece of that book back.
Any advice would be greatly appreciated!
The agency owner has offered to sell my clients back to me but I am unsure how to value it.
I have read as much as I can but am hoping for some additional feedback from the forum!
My plan at the moment is, If I can get a good deal on the book I think I will stay in the network but if not I will start over elsewhere. All the clients were sourced and written (and serviced, to some extent) by me, and they have no idea who the agency owner even is.
The book is roughly 1M in premium. 50% of renewals goes to the house for servicing and the other 50% is shared between the agency owner and I.
Q: A multiplier might work to use but maybe not the best. if used, Should this be calculated based on net or gross revenue? I assume net, ie. 1M x 15% x 50% x multiplier - what multiplier? I have read 1.5 is typical for the 50/50 deal...
Is it fair/should I factor in other related costs? eg. subtracting the cost of having me as an employee going forward? Guessing its ~ 6k/year.
I realize don't have much leverage here except to leave. its not ideal to start over but also OK and when the non-compete expires I am sure I can win a big piece of that book back.
Any advice would be greatly appreciated!
