: Be wary if a few large clients generate a high percentage of total premiums.
Buying a book of business—essentially purchasing a professional's client list and the right to future commissions—requires a structured approach to ensure the clients actually transition to you. A "proper paper" for this transaction is typically an , as buying the entire legal entity (share sale) often forces you to inherit the seller's past liabilities. 1. Valuation & Financial Analysis buying a book of business
Before drafting the agreement, you must determine the book's economic value. : Be wary if a few large clients
: Adjust your offer based on "goodwill" indicators such as: buying a book of business
: Look for stable renewal rates and minimal churn over the last 3+ years.