Selling our Final Expense Agency and Lead Company

[Newby]

Well I've heard 1-1.5x annual premium or 4-6x net profit. I thought it was too high too. But I heard that from a number of sources, specifically from principals that had sold their agencies in the past.

I will definitely accept your kind offer of 6X net profit. Thank you! I'm out!

 

[HoosierLife]

I will definitely accept your kind offer of 6X net profit. Thank you! I'm out!

Dude they said a Medicare book of biz sells for 10-12x net profit.

 

[Newby]

Dude they said a Medicare book of biz sells for 10-12x net profit.

I will accept that also.

 

[Tahoe Ray]

Dude they said a Medicare book of biz sells for 10-12x net profit.

Are these people also selling you your buy/sell life and DI?

 

[HoosierLife]

Are these people also selling you your buy/sell life and DI?

No they’re not selling me anything. If those numbers aren’t right, I’d like to know.

Like I said, I asked 2 different guys I know and trust and both came up with 4x net. One side up to 6x. Both had sold their agencies in the last 3 years.

One has been on the carrier side for 15 years and started his own IMO and sold after 5 years. The other has been in the industry for 30+ years. Running multiple IMOs and buying/selling others in that time frame.

Again, if the numbers are wrong, I’d like to know.