Valuating a Life Book Purchase

GOVERNER

Expert
27
I have an offer on the table to purchase a life book of business. I am currently own a independent P&C agency. I am very familiar with valuation methods on a P&C purchase. Are the same measurable s used in a Life/Annuity Book purchase?

Agency to be purchased details:

20 year old Agency

$200k gross commissions

$100k netted after Marketing and administrative fees.

Current owners are interested in staying on for 2 to 3 years as producers.

they are looking for 225-250k buyout , half up front , and the rest over 4 years.

This is just a high level overview, on paper looks good , but what information should I be seeking as we move deeper into negotiations?
 

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