Quality agencies commonly trade between 8 and 12 times EBITDA, with commercial-lines books at the top of that range. Retention rate is the first number every buyer asks for, because it is the closest proxy for how durable the book is. Producer agreements matter enormously: buyers assume any book without enforceable protection can walk, and they price for that assumption.
Perpetuation is usually funded out of future earnings, which means you are financing your own buyout and carrying the risk if the agency stumbles. It preserves the culture, keeps your name on the door and rewards loyal producers. For many owners that is worth real money. Just be clear about how much money, which requires knowing the external number.
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Get a confidential external valuation first. Then model perpetuation properly: the payout period, the discount for risk and delay, and what happens if a key producer leaves midway. Compare after-tax proceeds, not headline figures. Owners who do this frequently find the gap is larger than expected, and some still choose perpetuation, which is a perfectly good outcome as long as it is a decision rather than an assumption.
Quality agencies commonly sell for 8 to 12 times EBITDA, with commercial-lines books at the top of that range and personal-lines-heavy books lower. Retention rate, producer agreements and carrier relationships move the number more than premium volume alone.
Most acquirers want to keep producers, since the book follows the relationships, and will often offer retention packages. The terms are negotiable and should be negotiated explicitly. Enforceable producer agreements before a sale both protect the buyer and materially raise your price.