Looking to sell ACA Book of Business

[tjharris]

Have well established Arizona ACA book of business in the NE Valley that I am looking to sell. Not huge, all referral based and 98% of clients located in smaller AZ town. No employees, just myself looking to sell this particular line of business. Gross income approx. $55K. Many of these clients turn 65 and transition into Medicare clients. Always a steady stream of new clients. I do not do any advertising, if I did am sure it could produce even more business but because my agency also has a good size book of Medicare clients I choose not to advertise for new clients. At this time I am not looking to sell the Medicare book of business.
If interested will welcome your inquiry.

 

[bmarsh]

i'm looking to buy, send me a email or msg, [email protected]

 

[titeye]

I'm curious. You said this is a 98% referral based book..., many of whom are also transitioning into medicare....however, you are not willing to sell your medicare book...
If a potential buyer is interested, wouldn't they potentially be competing with you (someone with an existing relationship) for your referrals medicare business?

 

[DonP]

I'm curious. You said this is a 98% referral based book..., many of whom are also transitioning into medicare....however, you are not willing to sell your medicare book...
If a potential buyer is interested, wouldn't they potentially be competing with you (someone with an existing relationship) for your referrals medicare business?

The dirty little secret of aca is 2 fold . Big producers losing 10-15% of their book a yr to agents aor switching . Theres whole fmo organizations teaching their agents how to steal business . They use Facebook ads that ask for their name and dob. They have small disclaimers on the bottom that say by filling out the lead form your giving authorization for them to be your aor . Also if your working leads persistency horrid on the 18-40 year olds . Many agents lieing on income to get them big sudsidies . 1-2 years later they get a big bill from the irs . Also young people get jobs after 1-2 yrs

 

[LostDollar]

...however, you are not willing to sell your medicare book...

OP said "....... at this time ..... ".

Could be phasing into a partial retirement. (and a FL - AZ specialized Medicare Market agent buying the ACA book now could be a prime candidate to buy the Medicare book in 5-6 years.)

and

I'm curious. You said this is a 98% referral based book..., many of whom are also transitioning into medicare....however, you are not willing to sell your medicare book...
If a potential buyer is interested, wouldn't they potentially be competing with you (someone with an existing relationship) for your referrals medicare business?

Competition [maybe particularly in a "smaller AZ town"] is a two sided street.

 

[HoosierLife]

What multiple does an ACA book go for?

 

[scagnt83]

I couldnt imagine paying more than 2x for that situation. Especially if the agent is still actively selling medicare.

IF he put in a full non-compete and agreed not to write those clients for medicare at all... then someone would probably pay 3x.

Group Health goes for 3x-5x usually. But the retention rate is very high for group health.

If ACA has a 10% drop rate. That means the investment would pay around $30k in 5 years.

 

[DonP]

What multiple does an ACA book go for?

I wouldn’t give over 6 months commission unless the book was built with referrals and is comprised of older ( 45 and up) people . If your building it with leads many times younger people just looking for quick ins . They’ll get a job and drop it quickly . Also if built with leads the people are filling out forms that ask for their name and dob. That’s all you need to Aor someone . On some aca boards that’s all they talk about . Whole fmo’s are training agents to steal . I had a client( got from marketplace lead )I just signed up call Ambetter 2 weeks ago . She was wary of dropping her ins and wanted to verify coverage. They transferred her to internal sales rep who aor’ed me . I switched right back . Also these aca people get 50 emails frim marketplace there cheaper coverage out their so shop and switch . So clients built with leads will shop more .Also for the past 2 plus yrs the irs hasn’t really been checking the tax returns to compare sudsidies and will be yanking them .

 

[DonP]

I couldnt imagine paying more than 2x for that situation. Especially if the agent is still actively selling medicare.

IF he put in a full non-compete and agreed not to write those clients for medicare at all... then someone would probably pay 3x.

Group Health goes for 3x-5x usually. But the retention rate is very high for group health.

If ACA has a 10% drop rate. That means the investment would pay around $30k in 5 years.

10% drop rate ? Your dreaming . If you built with leads your looking at 25-30% drop rate . Many of these people in between jobs and just want quick short term coverage . Honestly with a family of 2 making $75k a yr this is crap coverage . Yeah it’s $500 -$600 a month but it’s a $4 to $9 k deductible. Plus the $4k expanded bronze will have a seperate $3k rx deductible. And these are HMO’s with tight networks . It’s great for 87 to 94% cost sharing levels but the rest it’s crap coverage.

 

[DS4]

I wouldn’t give over 6 months commission.... .

That is more than I would give