Originally Posted by senior-advisor-indiana
if I remember right, it was Oaktree Financial or something like that and it was 2.5x's on med Supp business.
I wonder how that is paid out...? Doubtful that it is a lump sum, and if so, not w/o recourse. What if they pay 2.5 on Joe Smith and ole Joe croaks one month later...? They aren't going to be out that lump sum of cash.
The value of the book would also depend on the avg age of the clients in the book. If they avg age was 68 vs avg age of 78; see the diff. One book is going to have a longer stream of income for sure.
I don't know for sure but I would think that something like this might sell more like an accting firm, dependent somewhat on retention (and mortality), which has to do with future income stream. So I would find it hard to believe a 2.5 x flat out pymt of total comm's... I'm sure there are some caveats on the details... and in the end those caveats = deductions from the price. But I'm just letting my financial brain run wild here, so I'll now try to lasso it back into where it belongs.
Hoping Philly man gets a BIG number, whatever it is.