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I am a small broker in CA and may have the opportunity to move to a larger broker wherein I would bring my book of business and then work there and have access to their resources (office space, clerical assistance, etc). What type of agreement is the industry standard for this type of arrangement. This larger company was an offshoot of another surety type operation and they just wanted the insurance side to be handled. So they hired a former collegue of mine and they are doing complicated E&S type commercial business in which I could bring some expertise to the table. Here are some of my questions specifically:

Is it possible and should I negotiate a percentage of ownership of the company as a whole?
What percentage commission should I receive on my own book if I go there and transfer it to them?
What type of exit arrangement if I retire?

Any other thoughts would be appreciated.

Thanks

I think standard is 50-50 you pay for your own benefits. That being said, it depends on your's and the agency's needs. For example if you expect total account management, marketing, word processing, claims and a W2 employee with benefit contributions etc. you are probably at 25%. If you do your own marketing, correspondence etc. and your accounts are low touch negotiate higher. If your accounts are attractive in the sense they are standard markets that can help the agency with profit sharing, factor that in as well. As far as ownership, it depends what you bring to the table as a whole including your book of business. Retirement can be 1 - 1.5 x gross commission. Good Luck!

"Is it possible and should I negotiate a percentage of ownership of the company as a whole?"
Yes

"What percentage commission should I receive on my own book if I go there and transfer it to them?"
22%-34% depending upon their EBITDA model and allocated support staff to your book

"What type of exit arrangement if I retire?"
Varies - recommend 1.5X of your book paid out over 5 years, or, 50% of your producer comp for 5 years if you've already cashed out your equity from the book purchase at entry

To answer your title question" What is the Industry Standard for Acquisition?'
Depends upon a lot of things (actually just north of over a 150 considerations) but, in general, (VERY GENERAL) you start with a 6X-8X multiple of EBITDA then add or offset by the consideration of variables.