I have an offer on the table to purchase a life book of business. I am currently own a independent P&C agency. I am very familiar with valuation methods on a P&C purchase. Are the same measurable s used in a Life/Annuity Book purchase?
Agency to be purchased details:
20 year old Agency
$200k gross commissions
$100k netted after Marketing and administrative fees.
Current owners are interested in staying on for 2 to 3 years as producers.
they are looking for 225-250k buyout , half up front , and the rest over 4 years.
This is just a high level overview, on paper looks good , but what information should I be seeking as we move deeper into negotiations?
Agency to be purchased details:
20 year old Agency
$200k gross commissions
$100k netted after Marketing and administrative fees.
Current owners are interested in staying on for 2 to 3 years as producers.
they are looking for 225-250k buyout , half up front , and the rest over 4 years.
This is just a high level overview, on paper looks good , but what information should I be seeking as we move deeper into negotiations?