Insurance Agencies typically sell for 8-12x EBITDA on platform deals, usually close in 30 to 75 days on a direct sale, and carry no broker commission when sold directly to an operator-buyer. The full answers are below.
How much is an insurance agency worth?
Insurance Agencies typically sell for 8-12x EBITDA on platform deals. Value is based on normalized owner earnings (SDE or EBITDA), not revenue: on $500K - $10M of revenue we usually see $150K - $2.5M of earnings, and that figure is multiplied by the range above. Clean books, recurring revenue, and a business that runs without the owner push toward the top.
How long does it take to sell an insurance agency?
Through a broker, six to twelve months is common. A direct, confidential sale to an operator-buyer like WETYR usually closes in 30 to 75 days, because there is one funded buyer, no public listing, and no auction to run.
Do I need a business broker to sell an insurance agency?
No. A broker runs a listing and charges 8 to 12 percent of the price, which can equal a full year of earnings. You can sell directly to a funded operator-buyer with no commission, using your own attorney. Owners often weigh Hub International, Acrisure, OneDigital, BroadStreet Partners, Patriot Growth against a direct sale.
How do I sell an insurance agency confidentially?
Sign a mutual NDA, share financials privately, and deal with a single buyer instead of a public listing. A direct sale means your staff, customers, and competitors learn on your timeline, not from a broker teaser or a marketplace posting.
What do buyers look for in an insurance agency?
Renewal commissions, E&O insurance, sticky books. Buyers pay up for recurring or contracted revenue, low customer concentration, a team that runs without the owner, current licensing, and clean, current financials.
What lowers the value of an insurance agency?
Heavy owner dependence, messy or cash-based books, one customer over 20 percent of revenue, expired licenses, and deferred equipment or facility investment all compress the multiple you receive.
Should I sell my insurance agency now or wait?
License, recurring commissions (renewals), aggregator roll-up wave The best time to sell is when earnings are strong and documented and you are not forced to. Waiting until burnout or a health event usually means selling from weakness, which buyers price in.
What are the tax implications of selling an insurance agency?
It depends on deal structure (asset versus stock sale), purchase-price allocation, and your state. Some states have no income tax on the gain; others do. Plan this with your CPA before signing so the price you agree to is close to what you actually keep.
Who buys insurance agencies?
Private equity platforms and strategic consolidators (Hub International, Acrisure, OneDigital, BroadStreet Partners, Patriot Growth) are the loud buyers, but they screen hard, move slowly, and re-trade at diligence. WETYR is the operator-buyer alternative: we acquire directly to run the business, keep it confidential, and do not need to syndicate the deal to a committee.
How do I prepare an insurance agency for sale?
Clean up three years of books, document how the business runs without you, confirm licenses and contracts are transferable, and separate personal expenses from the business. The clearer your earnings picture, the higher and faster the offer.
Can I sell an insurance agency with my current licensing?
Yes. Licensing (State insurance license, E&O insurance) transfers or is re-issued as part of a properly structured sale. We handle the licensing and transfer mechanics as part of diligence.
How many insurance agencies are there in the US, and does that affect my sale?
U.S. Census County Business Patterns counts roughly 133,999 insurance agencies nationwide. It is a large, fragmented market, which favors a seller: a well-run business with clean books stands out, and a direct buyer does not need a public auction to find it.
Get a confidential valuation
Tell us a little about your insurance agency. We reply with an indicative value range and whether we are a direct fit, within one business day. No obligation, no listing, nothing public.
Still have questions about selling an insurance agency?
Ask them on a confidential call with the operator who would buy it, not a broker who lists it.