How to Sell Your Insurance Agency Business
Insurance agencies sell at attractive multiples due to highly recurring commission revenue. Buyers focus on book of business composition, carrier relationships, and retention rates.
EBITDA Multiple
5x – 10x
SDE Multiple
2.5x – 4x
Typical Revenue
$500K–$5M
Avg. Timeline
6–10 months
What Drives Insurance Agency Valuation
Buyers evaluating insurance agency businesses focus on these key factors when determining what multiple to offer:
- Commission revenue retention rate (90%+)
- Book composition (personal lines vs. commercial)
- Carrier appointments and relationships
- Revenue per account and growth trend
- Staff licensing and producer agreements
- Agency management system and technology
Who Buys Insurance Agency Businesses
- Private equity-backed insurance brokerages
- Larger independent agencies
- National brokerages
- Carrier-affiliated acquirers
Example: Insurance Agency Valuation
A insurance agency business with $500,000 in EBITDA would typically be valued at:
Low estimate (5x)
$2.5M
High estimate (10x)
$5.0M
Use the Business Valuation Calculator with your actual numbers.