What's the Value of My Book of Business?

VALUATION:  How do I Value My Book of Business?

One of the most critical, if not THE most critical question both buyers and sellers face is how to value the agency (or book of business if buying only the book).

  • What are the basics of Agency/Book Valuation?
  • What should I look for to find the value of my book of business?
  • How can a Seller alleviate the concerns of a Buyer?
  • How can a Buyer alleviate the concerns of a Seller?

Methods To Value My Book of Business

There are typically two primary methods to deriving the value of an agency / book of business; (1) a multiplier of revenue, or (2) a multiplier of profits (a.k.a. “EBITDA”)[1].  Similar to composite rating of various insurance products, both multipliers of Revenue and Profits can be converted to a function of the other. 

Download our Free Report “Agency Perpetuation: What You Need To Know Before You Sell

I am personally a product of a family agency and an avid student of the industry. What better industry is there other than insurance? I’ll tell you that there isn’t one. Here’s a link to my bio in case you want to look me up – Matt’s Bio.

Work with a Professional

GDI Insurance Agency, Inc. has been in business for nearly 30 years and have bought, sold and merged with various entities for over 20 years.  We pride ourselves on providing accurate and honest opinions to our friends and partners and invite anyone looking to sell in the states of California, Arizona, Nevada, and Oregon to reach out to us for a consultation.

For a Confidential and Professional Conversation

Contact Matthew Davis to discuss Agency Perpetuation in detail. Matthew Davis, MBA, CPCU, AAI