Free Valuation of Business

[Bob_The_Insurance_Guy]

Went to a luncheon and a rep told us that Principal is offering business owners FREE business valuations. All they would need is the current Buy/Sell, and the last three years tax returns.

While this is NOT a real valuation, it gives the business owner a foothold on what their business is really worth, and it gives the agent the opportunity to possibly sell some Life/DI.

Has anyone heard/used this in the past? How long have they been offering this?

This might be a great way to Cold Call on Small Businesses. Principal is a well-known name.

Any thoughts?

 

[NinjaNic]

IT ROCKS! Our brokers love it, and I have helped seal some 6 figure cases from it...it really helps if you are prepping a case with shaky financials or want to provide something that typically costs $1500+ to a business owner.

 

[scagnt83]

Its a very nice service to offer.

Principle takes the business info and uses all 5 of the main valuation methods. Then they put it all in a report for the owner.

I am actually floating it to a business at the moment... we will see.

Obviously it's not as comprehensive as someone who specializes in that particular industry and can judge intrinsic value that is industry specific, but most owners dont need a $10k valuation.
They need a simple but professional valuation, which is what Principle will provide.

Principle has made some major improvements to their business services/line-up over the past few years. I hope they will come out with some more competitive products to match the concepts and services.

 

[BlockO]

Do any states with strict rebating laws have a problem with this?