Selling Non-Standard P&C Agency and Book of Business Texas

[djs]

Its always hard to value an agency and a nonstandard agency is tougher.
There are a lot of factors beyond just the annual premium/commission.

- Stability of book (this is a problem with a lot of non-standard agencies)
- Profitable?
- Will carriers allow the sale to the person you are selling to? (easier with non-standard)
- Overall market in the area, stable, growing, declining?
- How many new policies have been written in the last 6 months?
- What is the current agent going to do after they sell?
- What about staff? Will they stay? Or will they view this as an opportunity to go open their own agency? Do non-competes survive the sale?

There are many factors. I assume the 1.3, maybe 1.5 is a good ballpark, but everything gets adjusted from there.

Dan

 

[SmilingAgent]

Thanks very much, this is the type of info. I have been looking for.

 

[insurancejockey]

I was hoping I could get some helpful information on selling A Non-Standard P&C Agency and book of business in Texas. Like how would one go about pricing their agency? Does the multiple of one to two times commission still hold true, & if so how to know what # is appropriate. Does one charge for their name? How to best find buyers? I have an agency I started 25 years ago, but due to failing health must sell. Any Information you could offer would be greatly appreciated.

I'm a business broker. I have a buyer with deep pockets who would be interested in your book. Is it still for sale?

 

[Rashee@1977]

Can I take my p and c insurance exam with out being hired by a company first

 

[shawnmwalker]

I'd want to know:

Carriers
Size of Book
Fees being charged
Retention
Annual commission for the last 10 yrs of the 25. (Going up or down or staying flat)
Where
Source of Growth if any? Referrals, Leads, Marketing, ext.

Where are you in TX?

In my opinion, NS goes anywhere from .75 - 1.5

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I would also be interested in just how NS it is? DJS has some good ones up above. Many times the books are so small a carrier will not want to appoint the next guy, the new buyer. a good old fashion Buy/sell is a reason for getting out of the relationship. If I was a buyer I would like to know the contacts were sound.