Buying A "Book Of Business"

Buying a book of business is and has been one of the best ways to grow a business. If structured properly, there are ways to minimize the risk and ensure an equitable transaction.  Also, it is well to note that many asset purchases do not require regulatory approval – thus allowing for speedy, predictable outcomes.

The most common structure for the purchase of a book of business involves some amount of cash down, and then an earn-out period. The earn-out period payments are usually haircut to a benchmark of accounts, assets under management, and production. This ensures that over time, the buyer won’t pay for what he doesn’t get. But more importantly, the earn-out payments will also allow for significant upside potential for the seller. Just as the payments might be cut down due to certain assets/accounts/production failing to transfer, payments might be increased if those assets begin to improve in terms of referrals and productivity.

"Look List"

The best way to start the process, if you are a buyer, is to get on our “Look List.” This is a free service, whereby we ascertain your strategic objectives, and database them. The result is that whenever assets of clear and present interest to you come in, you will be sent a “one sheet” describing them in-depth.

Assets Move Fast

In this current market for assets, decent, fairly priced assets are often sold before they can be listed. This is because of the “Look List.” Buyers simply gobble them up in short order. So – rather than waiting and watching our list of Assets for Sale, you are advised to sign up to the look list – and guarantee that you get first look at anything of clear and present interest to you.