For my guys and gals who have narrowed down the retirement possibilities and want to sell, we need to talk about something really important: your book's value.

1. It’s time to sell your insurance
business:
What's It Worth?
John Hockaday

2. What to expect
• We’ve purchased 2 books of business
• A book is valued based upon
annualized gross commission, and is
generally referred to in multiples
• That multiple can range anywhere
from 1x-2.5x

3. When to sell
• Is your business falling off?
• The most recent book we bought: you
can see his business dropping by
about 12% each year – very common

4. How can you be
paid for your
book?

5. How you can be paid
1. Lump sum – cash upfront
2. Over time – like a pension
3. As-earned – you get paid if your book
makes money

6. Pass It On to Your Kids
Lump sum Over time As-earned
Lowest valuation Middle valuation Highest valuation
All your money up-
front
Your money is
guaranteed
Money is not guaranteed
– need to trust your buyer
Risky for the buyer Risky for the buyer Not risky for the buyer

7. Increase the value
of your book

8. Books with the
highest value
1. sell more insurance
2. Have more new business (not business
going into its 6th year of renewals)
3. Digitize your business (CRM)
4. Have Clients who are used to longer-
distance service
5. Sell to your fmo

9. The culture of your
business
• the biggest piece of all is the
culture of your business.
• If you have loyal customers, and
they've been loyal to you, I have a
feeling they'll be loyal to us, too.

10. Why sell to an fmo?
• Higher valuation – an FMO can afford to pay more
for your book
• Resources in place – an FMO has resources and
staff in place to take great care of your clients
• Proven track record – it's easier for your clients
to trust an FMO because there's a proven track
record there
• Easier transition – your FMO already has great
relationships with your carriers

11. We can help
• Interested in selling your book, but
aren’t sure where to go or how to
start the conversation?
• Visit our website:
https://lp.newhorizonsmktg.com/sell-your-book