Sell My Insurance Agency

Selling an insurance agency is unique because the value is almost entirely in the intangible asset of your book of business—your recurring commissions and client relationships.

Understanding Your Business Before Recommending a Broker

We start by analyzing your book. Is it primarily Personal Lines (Auto/Home) or Commercial? Are you Captive or Independent? What are your retention rates and carrier appointments?

From there, we identify business brokers who specialize in insurance M&A. Some are experts in transferring captive books within the same carrier network, while others work with large independent aggregators looking to acquire commercial books.

Key Value Drivers for Insurance Buyers

• Recurring Commissions – Predictable renewal income is the primary driver of agency value. Higher retention rates equal higher multiples.

• Product Mix – Commercial lines often command higher multiples than personal lines due to higher premiums and client stickiness.

• Carrier Relationships – Direct appointments with top-tier carriers are a significant asset that buyers want to acquire.

• Technology & Systems – An agency with modern agency management systems (AMS) and documented processes is easier to integrate and worth more.

Buyers scrutinize retention & Renewal Book, carrier Appointments & Mix, and producers & Account Managers.

Deep Dive: Recasting Your Insurance Agency Financials

To get the highest price, we work with brokers who "recast" your P&L to show the true Seller’s Discretionary Earnings (SDE) or EBITDA. In agency transactions, this involves specific adjustments:

• Owner Compensation: Your salary and distributions are restated to a market producer/manager rate to reveal true agency margin.
• One-Time Technology & E&O Events: AMS migrations and extraordinary one-time claims or legal costs are normalized as non-recurring.
• Personal Expenses: Vehicles, travel, and family payroll not tied to production are adjusted out of operating costs.

Who is Buying Insurance Agencies?

Agency M&A remains hyper-competitive, with more buyers than quality books.

1. National Brokerages & Aggregators: Acquirers pay aggressive multiples for agencies with $500k+ recurring revenue, strong retention, and staff continuity.

2. Regional Independent Agencies: Local agencies buy books to add carriers, niches, and producers, often the best cultural fits.

3. Individual Producers: Licensed producers buy smaller books with SBA financing tied to retention-based earnouts.

Why Confidentiality is Critical

If producers hear the agency is selling, they may move books to competitors before non-solicits are tested. If carriers hear informally, contingency and appointment conversations get complicated.

Our Approach: We market revenue, retention, and carrier mix through blind profiles under strict NDAs — your agency name is disclosed only to vetted, financially qualified buyers.

If you are exploring a sale now or in the next few years, your first move should be speaking with someone who understands the industry.

On our first call, we will discuss your revenue mix, retention rates, and exit goals. From there, we will suggest one or more brokers or M&A advisors who are best positioned to sell your specific type of insurance agency.