Insurance Agencies are typically worth 8-12x EBITDA on platform deals. On $500K - $10M of revenue we usually see $150K - $2.5M of normalized owner earnings (SDE or EBITDA), and that earnings figure is multiplied by the range above. The exact number depends on the value drivers below. Send your figures and we will give you an indicative range within a day.
How insurance agency valuation works
Valuation starts with normalized earnings, not revenue. We take your profit-and-loss, add back owner compensation above a market replacement, one-time costs, and personal expenses run through the business, and arrive at SDE or EBITDA. That earnings number is multiplied by a range that, for insurance agencies, runs 8-12x EBITDA on platform deals. Revenue matters only as far as it turns into transferable earnings; two insurance agencies with the same revenue can be worth very different amounts.
What moves an insurance agency's multiple
Pushes the multiple up
Renewal commissions, E&O insurance, sticky books. Recurring or contracted revenue, low customer concentration, a team that runs without you, clean books, and current licensing (State insurance license, E&O insurance) all push toward the top of the range.
Pulls it down
Heavy owner dependence, messy or cash-based books, one customer over 20 percent of revenue, expired or non-transferable licenses, and deferred equipment or facility investment.
Who buys insurance agencies and what they pay
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. License, recurring commissions (renewals), aggregator roll-up wave WETYR is the operator alternative: we buy insurance agencies directly to run them, so we can move quickly, keep it confidential, and pay a fair, certain number without a marketed auction.
| Factor | WETYR (operator-buyer) | PE platform | Individual buyer |
|---|---|---|---|
| Typical offer basis | 8-12x EBITDA on platform deals | Highest headline number | Financing-dependent |
| Time to close | 30 to 75 days | 6 to 12 months | 3 to 9 months |
| Stays confidential | Yes, no public listing | Committee and advisors see it | Usually broker-marketed |
| Fees to you | $0, we buy as principal | Broker 8 to 12% if listed | Broker 8 to 12% |
| Re-trade risk at diligence | Low | High | Medium to high |
| Who runs it after close | WETYR operates it | Installs their own team | New owner learns the business |
What your insurance agency is worth
The ranges on this page are the market; your number is specific to your books. The fastest way to know it is to send your revenue and normalized earnings and let us return an indicative range, with no obligation and nothing public. That is more accurate than any multiple table, because it reflects your actual recurring revenue, concentration, and owner dependence.
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.
Insurance Agency valuation FAQ
What is an insurance agency worth?
Most insurance agencies trade at 8-12x EBITDA on platform deals. The number that matters is your normalized owner earnings (SDE or EBITDA after adding back one-time and owner-specific costs), multiplied by a range set by size, recurring revenue, licensing, and how dependent the business is on you. On roughly $500K - $10M of revenue we typically see $150K - $2.5M of earnings. Send the numbers and we will give you an indicative range within a day.
How long does it take to sell an insurance agency?
A direct sale to WETYR can close in 30 to 75 days because there is no listing, no broker marketing cycle, and no auction. A brokered or PE-marketed process usually runs 6 to 12 months and puts your confidential financials in front of dozens of strangers. Location does not change the mechanics; readiness of your books does.
Do I have to list my business publicly to sell it?
No. That is the single biggest fear owners raise, and the reason many never start. WETYR buys directly and privately. Your staff, customers, and competitors do not find out unless and until you decide to tell them. Nothing goes on BizBuySell, no sign goes up, no teaser circulates.
What does WETYR charge to sell my insurance agency?
When we buy directly, you pay us nothing; we are the principal, not a broker taking 8 to 12 percent of your proceeds. When we advise on a sale to a third party, fees are agreed up front and disclosed in writing. Either way you know the economics before anything moves.
What makes an insurance agency sell for a higher multiple?
Renewal commissions, E&O insurance, sticky books. Concretely: recurring or contracted revenue, a team that runs the day-to-day without you, clean books, and current licensing (State insurance license, E&O insurance). We tell you honestly which levers are worth pulling before a sale and which are not worth the delay.
Find out what your insurance agency is worth
Confidential valuation in one business day. No listing, no obligation.