Buying An Allstate Book Of Business ##TOP##
But many Allstate agency owners do have other businesses or jobs and look at buying a book of business as an investment and not necessarily their only source of income. There are Allstate agency owners that own real estate brokerages, coffee shops, car washes, tax prep companies, and many other businesses.Almost all agency owners have at least one person working for them that handles some (or in some cases, a very large portion) of the sales and service work. There are even a few instances where the agency owner no longer lives in the state where their Allstate agency is located.
buying an allstate book of business
Typically a lender list for something like a 30 year fixed rate mortgage would just rank-order the lowest interest rate or APR. However, obtaining a loan on an insurance book of business can be more complicated and most borrowers are going to weigh other factors of importance to them.
Jeff Ahlers Agency, Inc720-902-5200GChitwood@G-Forceac.comAsking Price: $730,000PIF: 2415 Premium: $3,100,000Number of Staff: 4Number of Licensed Staff: 4Agency in Iowa with ADDED BONUS of Writing Business in Nebraska & South Dakota. Are you looking for a turnkey business opportunity with excellent growth potential, located in the highly desired state of Iowa? This established $3,100,000 premium agency is located in Sioux City, IA, where Allstate Insurance has a low market share and is looking to grow! The agency owner has built an amazing team, will be retiring, and looking for the right successor to take over the reins and continue growing the business. New business commissions range from 20%-37%, coupled with renewal commission and bonus opportunities, all the while increasing your equity stake in the book of business! Now is the time for you to take over this turnkey business and enjoy unlimited earning potential while living in a community that values the work and home balance!Date Posted: March 5, 2023
720-902-5200GChitwood@G-Forceac.comAsking Price: $945,000PIF: 3180 Premium: $4,200,000Number of Staff: 3Number of Licensed Staff: 3Agency in Oregon with ADDED BONUS of Writing Business in WashingtonAre you looking for a turnkey business opportunity with excellent growth potential, located in the highly desired state of Oregon? This established $4,200,000 premium agency is located in Milwaukie, Oregon, where Allstate Insurance has a low market share and is looking to grow! The agency owner has built an amazing team, will be retiring, and looking for the right successor to take over the reins and continue growing the business. New business commissions range from 20%-37%, coupled with renewal commission and bonus opportunities, all the while increasing your equity stake in the book of business! Now is the time for you to take over this turnkey business and enjoyunlimited earning potential, while living in paradise!Date Posted: March 5. 2023
So, today we're going to help you figure out what your book of business is worth. I'm going to share a bit about some books we have bought, the variables that go into a book's valuation, and what you can do to increase the value of your book.
A book of business in the senior insurance world is going to be valued based on your annual gross commission. So, when someone says "My book was valued at 1.5x," they mean that their book is valued at 1.5x their annualized gross commission.
Be careful of offers like that. People that don't want to service the clients will offer a really low valuation. One gal I was chatting with recently had a mostly Medicare Advantage book of business. One organization offered her 90% commission in the first year, 10% in the second year, and nothing after that. That was it. That's a really low valuation.
The cost of a book of business is usually 1.5-2.5x the annualized gross commission. For example, a hypothetical book of all Medicare Supplement business that produces $100,000 in income per year would cost between $150,000-$250,000.
When we look at the income, we want to know how much the book of business produced for you over the last year, but also how it's been doing over the last several years.
The Medicare Supplement book of business has recurring income, while the annuity book of business doesn't. Does the annuity business still have value? Absolutely! But does it have as much value as a Medicare Supplement business? No, it doesn't.
The final way to do this is as-earned. This relieves a lot of the risk for the buyer, because if the book doesn't make any money, the buyer doesn't pay. But if that business grows and it sticks, it earns more.
That first book we purchased has grown. It's been way better than what we thought. Our staff has done a ton of cross-selling, which has added a ton of value. We've written a lot of big annuity business out of there which has been a huge gift.
The first book of business we bought happened in the middle to end of 2017. We got a really tough call from an agent of ours who found out he had terminal cancer. He was given 24 months to live and asked us if we'd consider buying his book.
Having a CRM is also a big one. One of the first things we did when we bought that first book of business was to input all those paper files into a CRM. When that work is already done, it saves the person buying your book a lot of time and manpower.
When a current Allstate agency owner decides to sell their book to the company for TPP, the existing policies are either reassigned to other offices or seeded to a start-up agency. It takes 5 years for these policies to begin paying a full commission to those who are working them. Combine that issue with an emphasis on securing more renewals by paying higher bonuses and that makes it difficult for scratch businesses to earn a comfortable living. It takes almost 10 years of being in business to begin earning a six-figure salary for the average agency owner.
Purchase another agency or book of business: If you want to purchase an existing insurance agency, or simply purchase the clients of another agency owner who is moving or retiring, a 7(a) loan could be a great way to do so.
Financial firms have been on a tear buying up life insurance and annuities businesses. Last week, Sixth Street Partners announced a deal to buy life insurance business Talcott Resolution for $2 billion.
We have proven our value to national companies including Allstate, Farmers, and Nationwide among others. Every day, these agents are growing their books of business one exclusive lead and one policy at a time. Join the ranks of successful insurance agencies and find exclusive auto leads today!
In the pages ahead, we will explain and illustrate the dynamics of demand more thoroughly, all in service of the three goals of this book: 1) to help you understand the forces behind the shift from a supply driven to a demand driven economy; 2) to help you develop the business strategies required by that shift; and 3) to provide you with the tools for executing that shift.
The typical business sale is one in which a buyer continues to operate the business as a standalone business. But, there can be other situations where a business sale will generate more value to the seller and the buyer when it is sold as a book of business. A book of business is the customer base of a business that sells to other businesses. These are the customers who buy from the business on an ongoing basis. In the sale of a book of business, it is typical for the buyer to merge the purchased business into their business. They are likely to keep key employees, particularly those with the customer relationships. On the other hand, they are not likely to want to buy most of the equipment because it would duplicate equipment the buyer already owns.
In this sale, the selling price of the book of business should be between $250,000 and $500,000. There are two factors that affect the eventual selling price: the desirability of the customer base and how much competition there is for the business. Some factors that affect the desirability of the customer base are:
The second factor is how much competition there is for the business of business. If you are a buyer, you would like to be the only potential buyer dealing with a seller who is not knowledgeable about his options and who is unwilling to test the market for their business. If you are a seller, you would like to expose your business to as many potential buyers as possible so the price is bid up. The difference between the potential selling prices can be enormous. In one sale that I did, the selling price was four times the offer from the largest industry buyer who was buying many of the other businesses in the industry. 041b061a72