ChopperPilot
Apr 7 2005, 10:56 AM
Is there a standard in the industry to determine the selling price of an actuarial practice?
What might the variables be?
Thanx.
Demosthenes
Apr 7 2005, 11:26 AM
I have personal experience with only one such transaction. the price was approximately 1 times annual revenue. However, many many variables, such as
- whether to average over more than one year,
- exactly what services are provided,
- whether those services will still be needed by clients and prospective clients,
- what role will selling principals have after the sale,
- stock or cash?
- technology of the buyer vs. the seller,
- physical property,
- is real estate involved?
- leases?
- etc.