by muze7 » Wed Dec 21, 2011 03:04 am
How do you value a sub standard agency? Is there a formula? If it grosses about 175-200k consistantly, is the asking price of 250k out of reach on a sub standard business?
Posted: Wed Dec 21, 2011 08:51 am Post Subject:
What do you mean by sub standard? If it grosses 175-200k a year consistently, how is that sub standard. I would buy it for 250k in a heartbeat. Basically I would make my money back after 1.5 years.
I may have misunderstood your question though.
Posted: Thu Dec 22, 2011 05:12 pm Post Subject:
Sub standard agency is not define as a category beyond the limit of 250k, i think your doubt is not clear in post, provide more information.
Posted: Fri Dec 23, 2011 02:18 pm Post Subject:
Substandard agency? Do you mean they specialize in insuring substandard risks?
Or do you mean they should be grossing $500,000-$750,000?
If that's the case, the agency is not substandard, it's the agency owner who is. $250,000 would be a bargain price.
Posted: Fri Dec 23, 2011 05:29 pm Post Subject:
Normal price for an agency specializing in sub standard auto insurance is close to 1X an annual commission. If the persistency is over 80% and the growth is good 250 is realistic
Posted: Fri Dec 23, 2011 05:29 pm Post Subject:
Normal price for an agency specializing in sub standard auto insurance is close to 1X an annual commission. If the persistency is over 80% and the growth is good 250 is realistic
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