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It's Time to Sell Your Insurance Business: What's It Worth?


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For my guys and gals who have narrowed down the retirement possibilities and want to sell, we need to talk about something really important: your book's value.

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It's Time to Sell Your Insurance Business: What's It Worth?

  1. 1. It’s time to sell your insurance business: What's It Worth? John Hockaday
  2. 2. What to expect • We’ve purchased 2 books of business • A book is valued based upon annualized gross commission, and is generally referred to in multiples • That multiple can range anywhere from 1x-2.5x
  3. 3. When to sell • Is your business falling off? • The most recent book we bought: you can see his business dropping by about 12% each year – very common
  4. 4. How can you be paid for your book?
  5. 5. How you can be paid 1. Lump sum – cash upfront 2. Over time – like a pension 3. As-earned – you get paid if your book makes money
  6. 6. Pass It On to Your Kids Lump sum Over time As-earned Lowest valuation Middle valuation Highest valuation All your money up- front Your money is guaranteed Money is not guaranteed – need to trust your buyer Risky for the buyer Risky for the buyer Not risky for the buyer
  7. 7. Increase the value of your book
  8. 8. Books with the highest value 1. sell more insurance 2. Have more new business (not business going into its 6th year of renewals) 3. Digitize your business (CRM) 4. Have Clients who are used to longer- distance service 5. Sell to your fmo
  9. 9. The culture of your business • the biggest piece of all is the culture of your business. • If you have loyal customers, and they've been loyal to you, I have a feeling they'll be loyal to us, too.
  10. 10. Why sell to an fmo? • Higher valuation – an FMO can afford to pay more for your book • Resources in place – an FMO has resources and staff in place to take great care of your clients • Proven track record – it's easier for your clients to trust an FMO because there's a proven track record there • Easier transition – your FMO already has great relationships with your carriers
  11. 11. We can help • Interested in selling your book, but aren’t sure where to go or how to start the conversation? • Visit our website: