December 22nd, 2011
Tips for selling
your book of business
when the time comes.
Photo by Lin Mei
As insurance and investment advisors reach retirement age, they start thinking about divesting their books of business and selling it to the next advisor who can manage the needs of their various clients. However, there are a few things every advisor should know going in when they're about to take the plunge and sell their book.
Do you want to actively market yourself? This is the first question advisors and financial planners need to ask themselves, according to Cameron D. Jacox and James E.C. Hilton, managing partners of Jacox-Hilton Producer Consulting, a Toronto- and Boston-based firm that helps insurance advisors and financial planners value their books of business and match buyers with sellers.
"Some advisors may want to do things privately because they don't want their clients to know that they are retiring," says Jacox. "There are different channels for finding a buyer, such as of online networks, conferences and coming to us to match you up with one of our buyers or sellers who would be interested in your book or selling a book."
There are a lot of informal selling options, including LinkedIn, which supports buy/sell book groups and financial practice groups. You can also go to your MGA or your insurance carrier and tell them of your plans, and they will generally know who is out there looking to buy or they may buy your book off of you themselves.
"Industry events and conferences are also excellent for networking, and I've seen conversations emerge that revolve around buying or selling a book on numerous occasions," says Hilton.
(How to Sell Your Book of Business
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