Valuation of a BoB.

sminco123

New Member
19
Sorry to be dense. I've read many threads and just need to be certain of 1 thing. The valuation of a bob, is a multiplier of revenue. Revenue as in annual commissions? Right? So when someone is buying a bob at 2X revenue, a bob that is producing 100k in commissions annually has a price of 200k.
Thanks in advance for the responses.
Sorry Forum, a little more reading and I found the answer.
 
Last edited:
If a book has $100,000 a year of sellable, transferable net recurring revenue (NRR), I've seen it done by multiplying NRR by a factor of anywhere from 1.5 to 2.5. If a producer had an NRR stream of $100,000 a year, the value of that practice could be anywhere from $150,000 to $250,000 depending on the multiplier.
 
Is this true for a health BOB as well as a P and C book? Will ACA negatively affect the value of an individual and small group health book?
 
Is this true for a health BOB as well as a P and C book? Will ACA negatively affect the value of an individual and small group health book?

I think ACA did effect the Health ins book. Also if a client terminates you have to wait till the open enrolment to get him back on. That is my opinion but I still like my renewal off my Health BOB I see no reason to sell it :biggrin::):biggrin:
 
Back
Top