Whats an Agency worth?

[David0047]

Hello all,
I was wondering if anyone knew how much Independent Personal Lines P&C agencies were selling for (how many times commission)?? We are in So. California and sell for some highly sought after Companies---- Loss ratio is in the mid 50's---

Thanks

 

[JRoot]

The multiplier in California is around 1.5 to 2.5 times annual net income for personal lines P/C. A closer look at your book will determine that.

ie. If property is included, add that to the price. If a lease is included, terms of the lease effect the price. Any employees? % of standard and non-standard auto, any commercial business mixed in?

A huge factor is if you want all cash upfront or if you're willing to seller finance a portion. SBA loans are very hard to get right now.

I can put you in touch with a business broker in Southern CA who has many buyers looking to acquire books of business. He specializes in the sales and acquisitions of insurance brokerages. Shoot me your info and I'll put you in touch.