Process for selling book of business

[wornout]

Hello! I have a top level question. I have been approached by another "local" agent wanting to buy my book. I am definitely interested but not sure how much information to share. I have a non-disclosure but what is the time for that to be signed?
I can provide him top level info - i.e. preferred book, annual premium and retention rate but beyond that what is the process? Should he sign nondisclosure, I then provide top level carrier and ratios if he makes an offer do I require a bank letter or financial statement before providing further details?
He wants to avoid a broker because he wants to avoid the fees. I do have an attorney who will draft the agreement and review.

 

[InsCommentary]

Visit www.agencyconsulting.com. Al Diamond is one of the top consultants in the country on this.

 

[AZDave]

I need to do some planning, and this ^ ^ is a great website Bill! And I always thought is was a multiplier of revenue...

 

[InsCommentary]

Insured demographics mean a lot.

 

[Tahoe Ray]

I need to do some planning, and this ^ ^ is a great website Bill! And I always thought is was a multiplier of revenue...

I've been approached before and it was a multiplier of profit, not revenue.

I also have a buddy that bought a huge book and the demographics were extremely important in the valuation.

I think it depends on your business model as a whole.

 

[wornout]

Thanks, I am not concerned about the valuation as much as the process for the sharing of data/financials. I am going to need the valuation confirmed, but I am going to see what he offers - don't want to talk price before he knows what I am offering.

 

[Tahoe Ray]

Thanks, I am not concerned about the valuation as much as the process for the sharing of data/financials. I am going to need the valuation confirmed, but I am going to see what he offers - don't want to talk price before he knows what I am offering.

Thanks, I am not concerned about the valuation as much as the process for the sharing of data/financials. I am going to need the valuation confirmed, but I am going to see what he offers - don't want to talk price before he knows what I am offering.

Valuation (with the purchaser) normally comes before sharing of data/financials. How is supposed to bid on something without a valuation?

I frankly don't know how you'd do this without an agency or some type of escrow arrangement. That's why you pay those fees.