I am buying a small book from an agent in town (North Central Florida) who is retiring. He is asking a 1.75 multiplier. Here are the specifics:
Revenue: $100,000
Standard PL: 49%
Commercial: 22%
Non-Standard PL: 29%
The agent handled the book alone, no employees. I am doing my due diligence and so is the owner. He wants to make sure his customers will be well taken care of. Which I think is great, because that makes the customer feel good with the new ownership...hoping this will help with the retention.
I have been hanging out in his office for several days to see how smoothly things work on his day to day. No issues there.
Do you all think 1.75 is a fair multiplier?
Revenue: $100,000
Standard PL: 49%
Commercial: 22%
Non-Standard PL: 29%
The agent handled the book alone, no employees. I am doing my due diligence and so is the owner. He wants to make sure his customers will be well taken care of. Which I think is great, because that makes the customer feel good with the new ownership...hoping this will help with the retention.
I have been hanging out in his office for several days to see how smoothly things work on his day to day. No issues there.
Do you all think 1.75 is a fair multiplier?
