Sell your Insurance business
Insurance agencies command some of the strongest multiples in the lower middle market, driven by recurring commissions and high retention. Here’s what your agency is worth and how to sell it.
What it’s worth
Insurance valuation multiples
Insurance agencies are usually valued on revenue rather than earnings — commonly 2–3× annual commission revenue. On an earnings basis, owner-operated firms land near 2.5–4× SDE; once a firm has professional management and roughly $1M+ of EBITDA, buyers price on EBITDA and multiples commonly reach 6.5–9×, rising toward 9–13× at scale.
These are general, illustrative ranges for healthy businesses—not a valuation or an offer. Actual value depends on size, margins, recurring revenue, customer concentration, owner dependence, and deal structure. For a real number, request a free confidential valuation.
Where you land
- 2.5–4×SDEOwner-operated — you still run it day to day
- 6.5–9×EBITDAManagement-run, roughly $1M+ EBITDA
- 9–13×EBITDAPlatform scale, sold into a competitive process
Factors that affect value
What moves your multiple — up and down
Two insurance businesses with identical earnings can sell for very different numbers. These are the factors buyers actually price, and most of them can be improved before you go to market.
What lifts your multiple
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High policy retention
Retention is everything. A book that renews at 90%+ commands a premium.
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Commercial lines concentration
Commercial books typically carry higher, stickier commissions than personal lines.
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Contingent and profit-sharing income
Documented contingency income adds high-margin revenue buyers will pay for.
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A producer team that stays
Producers who remain post-sale keep the book intact — the single biggest buyer concern.
What pulls it down
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Owner-written book
If you personally wrote and service the accounts, buyers question whether the book survives you.
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Carrier concentration
Relying on one carrier creates real risk if the appointment changes.
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Declining retention
A shrinking book gets valued on where it’s heading, not where it’s been.
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Personal-lines-only mix
Personal lines churn faster and typically earn lower multiples than commercial.
Who’s buying
The buyer landscape
- PE-backed agency aggregators paying premium multiples nationwide
- Strategic regional agencies expanding books and territory
- Individual buyers and producers acquiring or merging books
Florida & beyond
What’s specific to selling here
- Florida’s insurance market makes specialized, well-run agencies especially valuable
- Buyers are largely national aggregators — book quality matters more than location
- Retention, carrier relationships, and producer continuity are key diligence items
Before you go to market
How to prepare—and lift your value
1
Strengthen retention and reduce producer and client concentration
2
Document commissions, contingents, and loss ratios
3
Plan producer and staff continuity through the transition
FAQ
Selling your insurance agency: FAQ
Why do insurance agencies sell for such high multiples?
Because commission income is recurring and sticky. Quality books often fetch 2–3× revenue or 6–10× EBITDA, well above most small businesses.
Who buys insurance agencies?
PE-backed aggregators are extremely active and often pay premium multiples, alongside strategic regional agencies and individual producers.
What raises my agency’s value?
High retention, diversified carriers and clients, strong loss ratios, niche specialization, and low dependence on any single producer.
Start here
Thinking about selling your Insurance business?
Start with a confidential conversation and an honest read on your value, your likely buyers, and your timeline.