The purchase price is rarely a flat calculation and is heavily influenced by the "quality" of the agency's revenue: How Much Does It Cost to Buy an Insurance Agency?
: Multiples averaged 11.4x as of late 2025. how much does it cost to buy an insurance agency
The cost to buy an insurance agency typically ranges from for established mid-market businesses. For smaller operations or individual "books of business," costs often fall between $150,000 and $350,000 . Valuation Multiples The purchase price is rarely a flat calculation
Agencies are primarily valued based on their earnings or revenue, with multiples varying by the size and profitability of the firm. : Small Agencies : Typically sell for 4x to 6x their EBITDA. For smaller operations or individual "books of business,"
: A common "rule of thumb" for buying a specific book of business is 1.5x to 2.5x the annualized gross commission. Factors Influencing the Final Price
: Large commercial-focused agencies in major metros can reach 10x to 13x EBITDA.