TradeExit Guide

What is a insurance agency worth?

Insurance agencies sold on BizBuySell between 2021 and 2025 went for a median 2.7x seller's discretionary earnings (SDE), with the middle half between 1.88x and 3.44x; at the median that puts a $300,000-SDE insurance agency at about $810,000.

Updated 2026-09-23 · 2 sources · By the TradeExit Guide team

Insurance agency value at a glance

Median SDE multiple (sold)
2.7x
BizBuySell 2021-2025
Middle half of sales
1.88x-3.44x
SDE multiple
Median revenue multiple
1.51x
middle half 0.94x-2.17x
Median sale price
$500,000
BizBuySell, sold Q3 2021-Q2 2026

Estimate your insurance agency's value

Applies the cited SDE multiple band for your trade, then positions you inside it using recurring revenue, customer concentration, owner dependence, years operating and trend. Educational estimate, not an appraisal.

Pre-tax profit + one owner's pay and perks + interest + depreciation + one-time costs. Not sure? Use the SDE calculator.

Educational estimate, not an appraisal or an offer. Ranges come from published closed-sale data and broker/adviser reports cited on each trade page; the adjustment weights are our own documented heuristic (see Editorial policy). Real estate, inventory and working capital are excluded.

Get the full valuation brief (printable)

Your inputs and range, the cited multiples behind it, the buyer type active at your size, three changes that move the multiple, and next steps - on this page, ready to print or save as a PDF.

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Valuation brief: -

Prepared with the TradeExit Guide valuation calculator (tradeexitguide.com). Educational estimate, not an appraisal or an offer.

Your inputs

Annual revenue-
SDE / owner cash flow-
Recurring / contract revenue-
Largest customer share-
Owner hours per week in the work-
Years in business-
3-year trend-

Result

Estimated value range-
Implied SDE multiple-
Cited SDE multiple band for this trade- to -
Full cited range in dollars-
Implied multiple of revenue-
Most likely buyer type-
Pricing basis-
Source of the band-

What moves your multiple

  • Recurring revenue (you: -). At 25%+ the calculator moves you up the band; at 50%+ further. Maintenance agreements, contracts and memberships count.
  • Owner dependence (you: -). Under 20 hours a week in the field or chair helps; under 10 helps most. Buyers pay for a business that runs without you.
  • Customer concentration (you: -). Keep any single customer under about 15% of revenue.

Next steps

  1. Recast your earnings line by line with the SDE calculator (tradeexitguide.com/tools/sde-calculator/).
  2. See what you would keep after taxes and fees with the after-tax proceeds calculator (tradeexitguide.com/tools/after-tax-proceeds-calculator/).
  3. Read your trade's valuation page for the sources behind the band and the drivers buyers cite.
  4. If you have an offer, compare it on guaranteed cash, not headline price (tradeexitguide.com/guides/unsolicited-pe-offer/).
  5. Before you sell, get a formal valuation from a credentialed appraiser or an experienced intermediary.

Ranges come from published closed-sale data and broker/adviser reports; adjustment weights are our own documented heuristic. Real estate, inventory, working capital, debt and taxes are excluded.

Published insurance agency multiples by deal size

Every figure is linked to where we read it (accessed 2026-09-23). BizBuySell sold interquartile range 1.88-3.44x SDE for insurance agencies (2021-2025). Many agency deals are quoted on commission revenue instead (below).
Deal size / buyerMultipleSource
Main Street sales, 2021-2025 (sold)1.88x-3.44x SDE (median 2.7x); revenue 0.94x-2.17x

BizBuySell Valuation Benchmarks - Insurance Agency

All industries, Q2 2026 (context)Under $500K deals: 2.0x SDE; $2M-$5M: 4.0x EBITDA; $5M-$50M: 5.8x EBITDA

IBBA / M&A Source / Pepperdine Market Pulse, Q2 2026 highlights

What moves the multiple for a insurance agency

Key metric buyers ask for: Commission revenue by line (commercial P&L, personal lines, benefits, life), retention, carrier contracts, book ownership (independent vs captive).

Pushes you toward the top of the range

  • High retention and a commercial lines book
  • Carrier contracts the buyer can keep or replicate
  • Licensed producers and account managers who stay

Pushes you toward the bottom

  • A captive book the agent does not actually own
  • Concentration in one carrier or a few large accounts
  • Producers with no non-solicit agreements

How buyers value a insurance agency

Small agencies are priced as a multiple of commission revenue or SDE, often with part of the price tied to retention. Larger agencies are bought by PE-backed brokers on EBITDA, but those multiples are published mostly by advisors to larger deals and are not a guide for a small book.

Rule of thumb on revenue: About 0.9-2.2x commission revenue (BizBuySell sold middle half 0.94-2.17x). Use it only as a sanity check; buyers pay for cash flow they can finance.

Worked example: Harbor Point Insurance Agency (fictional)

Fictional business for illustration. Revenue $620,000, SDE $240,000. Independent P&C agency, 55% commercial lines, 91% retention, 7 carrier appointments.

Position in the cited rangeImplied valueMultiple of revenue
At the low end (1.9x)$456,0000.74x
Midpoint (2.7x)$648,0001.05x
At the high end (3.45x)$828,0001.34x

Who buys a insurance agency at each size

Local agencies and producers; regional independents; PE-backed insurance brokers and aggregators. See who is buying insurance agencies for named acquirers and their sponsors.

SDE / EBITDA sizeMost likely buyerHow they usually pay
Under ~$300K SDELocal agency or producerSBA or bank loan plus buyer cash; sometimes a seller note
~$300K-$1M SDERegional agencySBA loan, seller note, or cash from a larger buyer
$1M+ EBITDAPE-backed brokerMostly cash at close; rollover equity and earn-outs are common

Thinking about selling your insurance agency?

See the step-by-step sale process, license transfer rules and documents buyers will ask for.

How to sell a insurance agency

Frequently asked questions

How much is an insurance agency worth?

Insurance agencies sold on BizBuySell from 2021-2025 went for a median 1.51x revenue (middle half 0.94-2.17x) and 2.70x SDE. Commercial lines, retention and whether you own the book move you within that range.

Do my carrier appointments transfer?

Not automatically. Producer licenses are personal, an agency entity license needs a designated responsible licensed producer (per the NAIC uniform business entity application), and carriers must agree to appoint the new owner.

Is this an appraisal?

No. It is an educational estimate built from published data. Lenders, courts and the IRS may require a credentialed appraisal; see appraisal vs estimate.

Sources

  1. BizBuySell Valuation Benchmarks - Insurance Agency (accessed 2026-09-23)
  2. BizBuySell - Business valuation multiples by industry (sold Q3 2021-Q2 2026) (accessed 2026-09-23)
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