Appraising a Book of Business

CR in STL · 10-29-2009, 04:22 PM

Anyone aware of a company that appraises a book of business?

Consultant · 10-29-2009, 05:30 PM

If you are serious. I know someone that is currently buying books of business. He's just a small agency of 3 but accounts for much in Norcal.

MedicarePlanSolutions · 11-02-2009, 01:27 AM

Originally Posted by CR in STL

Anyone aware of a company that appraises a book of business?

You should talk to some other agents in that area. The value of a book can vary a lot depending on things that only they would know. A good rule of thumb would be 1.5 to 3 times the annual renewals.

somarco · 11-02-2009, 08:22 AM

rule of thumb would be 1.5 to 3 times the annual renewals

.

Depending on the type of business, that can be VERY generous.

Med supp biz might capture upwards of 3x, or some P&C lines but under 65 health lines will be lucky to get 1.5x.

There are companies that will buy a book of renewals. They might have an idea. If you find an agency willing to sell, tell them to get an appraisal by one of these companies. I can't think of the names of these companies right now, but they advertise in trade magazines. You can also try a Google search.