Pricing for acquisition or partnerships

Rwsscott

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Looking for advice and help - I recently recieved an offer to join a small public affairs firm. I'd be bringing my own book of monthly accounts billings in house with me.

Does anyone have any experience, advice, or resources for valuing an existing book of business?

In this age of compensation transparency, I was surprised I haven't been able to find a good benchmark or approach to fairly negotiating a split on existing business or an approach to pricing acquisition.

The details:
- I'd be continuing to manage my accounts but with new staff support from the firm
- I'd be working on additional accounts for the firm
- I would not be a partner (looking at phasing or buying into that over time).

My current approach: negotiate based on three separate compensation figures
1) their cut of my existing business for taxes, expenses, and profit on staff and expenses
2) a 2 tier commission structure, 1 on any future growth of the above accounts, and 2 a lower commission on unrelated new business I bring in
3) salary
 
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