Owner Financing a Book of Business

[CR in STL]

I am in negotiations on buying a book of business (group life & Health) and looking for input from those of you who have purchased books. Obviously once the attorneys get involved they will fill in the gaps but while we are in the intial negotiations I am looking for suggestions on the following

1. Is it common to pay the lump sum up front and secure your own financing vs. owner financing
2. How did you structure the owner financing (Terms, rate, Etc)
3. How long was the financing period
4. What conditions did you have
5. What clauses did you have other than financing (no compete, due diligence, Etc.)

Thanks in advance

 

[Josh]

Every deal is different because the financial situations people are in and what each side wants out of it. From what I recall of your situation you still want to have the previous owner around and only sell a part of the book. If you're serious about this and the situation hasn't changed then you really should have someone sit down and spend a few hours with you about. This is a complicated deal and when both money and family are involved in business the economic and emotional consequences of doing something wrong can be long and lasting.

 

[GreenSky]

I've seen the concept of "teaming" really take off....I would definitely check out FindBob (bob stands for book of business). It has a cool teaming feature for those *planning* for succession, even if they're 15 years away. Lots of young blood looking to help transition! I know GAs and agents who have had success buying/selling and teaming with books of business...

Cool. I know everyone has been waiting since 2009 for you to respond on this thread.

Rick

 

[ElLoachero]

I guess one person was.

And yet you've added nothing of value, and have completely screwed up unread posts by shilling on every post in P&C that has anything to do with a book.