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Valuing an actuarial practice for sale


Guest ChopperPilot

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Guest ChopperPilot

Is there a standard in the industry to determine the selling price of an actuarial practice?

What might the variables be?

Thanx.

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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.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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