Buying Ins.agency.est comm.$290,000;$217,000broker $75,000 agency.what is fairprice to offer?

Rules of thumb are nice but aren't enough to get financing. Here's an article my friend Ernesto wrote about this topic: http://www.insuranceyak.com/agency-purch...

I would also keep in mind your own experience in the bid. In other words, over-valuing your own expertise and the confidence that ensues may result in a bid that is too high.

3 - 5 years commissions, depending on profitibility and contingencies.

What ever you believe to be fair. For example, the ownership clause in a Primerica RVP contract says they can sell the business to the company or to another RVP for 8-10 times their current yearly payout.

If the broker has had years of growth, I would be surprised if they accepted less than 1 - 1.5 million for it.

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