A friend of mine offered to sell me his book of business. In about 12 months, he built a $2M book with over 3000 clients mainly P&C pers lines. To say the least, it will be a problem book that will require lots of work. IE. invalid discounts offered, low limits, bad service, underinsured homes, etc. Service is my strong point and do believe that i can salvage about 50-80% of the business. He is offering it to me at very low risk...Here are the details. 10K down (owner financed for 36 mo 0% interest). I pay him 50% of the renewal commisions every mo for 36 mo with no minimum guarantee on his part and the most i would have to pay is 190K, whichever occurs first. Also, I have to take over his lease which is approx 1K/mo for 5 years. He has non competes from him and his producers. I am too inexperienced to make this decision on my own. Please give me any advice and your thoughts. Thanks.
2007-09-25
18:44:16
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8 answers
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asked by
Chris B
1
in
Insurance