Buying A Book Of Business -

: Adjust your offer based on "goodwill" indicators such as:

: Valuations often use a multiple of the last 12 months of revenue or EBITDA. For example, small insurance books may sell for 2 to 2.5 times revenue , while larger agencies can reach much higher multiples. buying a book of business

Buying a book of business—essentially purchasing a professional's client list and the right to future commissions—requires a structured approach to ensure the clients actually transition to you. A "proper paper" for this transaction is typically an , as buying the entire legal entity (share sale) often forces you to inherit the seller's past liabilities. 1. Valuation & Financial Analysis : Adjust your offer based on "goodwill" indicators

Before drafting the agreement, you must determine the book's economic value. A "proper paper" for this transaction is typically

: Look for stable renewal rates and minimal churn over the last 3+ years.

: Be wary if a few large clients generate a high percentage of total premiums.