Purchase a book of business?

[Evan]

Hey All,

I wanted to get some insight from this board on your thoughts of buying a Medicare book of business in this environment. I am mainly looking at just buying the UHC portion as I'm worried about some of the other carriers not being worth it. If so what would be a good offer 1x Annual earnings or 1.5.

Thanks,

evan

 

[axeman462]

if someone offered me 1.5x for my book I'd laugh at them.

 

[Newby]

Hey All,

I wanted to get some insight from this board on your thoughts of buying a Medicare book of business in this environment. I am mainly looking at just buying the UHC portion as I'm worried about some of the other carriers not being worth it. If so what would be a good offer 1x Annual earnings or 1.5.

Thanks,

evan

Why would UHC be better than MOO? Or Aetna? Or any other company?

I can’t imagine that you can find agents that will sell for 1.5x let alone 1x

 

[Evan]

So its a friends mothers book who isn't doing well. He mainly does under 65 health insurance. Her Med Supp business is mainly UHC and United American(which they are going to keep).

Evan

 

[axeman462]

So its a friends mothers book who isn't doing well. He mainly does under 65 health insurance. Her Med Supp business is mainly UHC and United American(which they are going to keep).

Evan

so, you want to take advantage of your friend's dying mother?

 

[MedicareAgent]

I buy books for 1 year of income.

 

[Bevo]

Hey All,

I wanted to get some insight from this board on your thoughts of buying a Medicare book of business in this environment. I am mainly looking at just buying the UHC portion as I'm worried about some of the other carriers not being worth it. If so what would be a good offer 1x Annual earnings or 1.5.

Thanks,

evan

If they have an established agency with decent EBITDA, they potentially have offers with an 8-12 multiple. I'd say 1.5 is most certainly NOT a good offer, but perhaps someone out there is desperate enough to take you up on it.

 

[Evan]

so, you want to take advantage of your friend's dying mother?

Not taking advantage of anyone. Just trying to get some insight on if its even smart to do with all thats going on in Medicare. Thanks.

 

[DonP]

1x book is an insult . Unless it’s a med sup book and the avg age is 4 to 4.5 yrs old they have mental illness to sell at 1x . They could hire a person 20 hrs a week and make 3 x that doing nothing over the yrs

 

[axeman462]

Not taking advantage of anyone. Just trying to get some insight on if its even smart to do with all thats going on in Medicare. Thanks.

if you can get a medicare book for 1.5x, then absolutely do it. its a steal.

I believe the going rate is more in the 2.5 - 3.5x range, depending on the average age and mix.