Agency owners & producers · US & Canada
Insurance distribution has consolidated for two decades and the buyer pool remains deep and well-funded — good news, if you know what is actually being valued.
In short
Small owner-run agencies typically sell for about 2–3.5x seller’s discretionary earnings (SDE), or roughly 1.5x commission revenue. Agencies with roughly $1M+ of EBITDA trade around 7–10x EBITDA, and platform-scale brokerages 10–13x or more, with commercial-lines books at the upper end and personal-lines-heavy books lower. These are market ranges, not a quote or a guarantee. Retention rate, producer agreements, and carrier relationships move the number more than raw premium volume.
The honest version
Market ranges, not a quote or a guarantee. Retention rate, producer agreements and carrier relationships move the number more than raw premium volume.
Book retention & producer agreements
Client retention is the first number every buyer asks for. It is the closest proxy for the durability of the book — and it drives the multiple more than size does.
Illustration only — not a benchmark or a statistic.
Buyers will assume that any book without enforceable protection can leave, and they will price for that assumption. Enforceable agreements materially change the price.
Sale vs perpetuation
Both are legitimate. The mistake is choosing one without ever pricing the other — a confidential valuation lets you compare them properly.
| Question | Internal perpetuation | External sale |
|---|---|---|
| Who buys | Your producers | National brokers, PE-backed aggregators, regional agencies |
| What it protects | Preserves culture and rewards your producers | Structured terms for your team, your stay-on and the earn-out |
| The number | Rarely matches an outside offer | Almost always a higher number |
| Liquidity | Less clean than an outside sale | Cleaner liquidity |
Price both before you choose one.
What moves the number
The first number every buyer asks for — the closest proxy for the durability of the book.
Commercial books carry higher revenue per account and stickier relationships, and are priced accordingly.
If the book walks when a producer walks, the buyer is purchasing a risk. Enforceable agreements materially change the price.
Appointments, loss ratios, and the stability of contingent commissions all feed directly into the underwriting.
The buyers
Which of those is at your table changes your number far more than anything on your balance sheet.
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Most owners in this sector are approached directly by a consolidator or platform buyer. A buyer negotiating against nobody has no reason to move on price or on terms. In a competitive, confidential process, several credible buyers consider the same agency at once — and your producers and clients hear nothing until you decide.
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Straight answers
More in our seller guides — or ask Vera in your free account.
Small owner-run agencies typically sell for about 2–3.5x seller’s discretionary earnings (SDE), or roughly 1.5x commission revenue. Agencies with roughly $1M+ of EBITDA trade around 7–10x EBITDA, and platform-scale brokerages 10–13x or more, with commercial-lines books at the upper end and personal-lines-heavy books lower. These are market ranges, not a quote or a guarantee. Retention rate, producer agreements, and carrier relationships move the number more than raw premium volume.
National brokers and private-equity-backed aggregators are the most active and best-funded buyers, followed by regional agencies expanding their footprint. Internal perpetuation to producers is also an option, though it rarely matches an outside offer.
Both are legitimate. Perpetuation preserves culture and rewards your producers; an external sale almost always produces a higher number and cleaner liquidity. The mistake is choosing one without ever pricing the other. A confidential valuation lets you compare them properly.
The engine, pointed at insurance
Before market
Buyer matching
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Buyer Simulation
Found and fixed before you go to market — not in diligence, where it costs you money.
Offer analysis
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