Commercial insurance brokerage firms serve as intermediaries connecting businesses with carriers for property, casualty, liability, workers' compensation, and specialty coverage. The industry generates highly recurring commission and fee-based revenue tied to annual policy renewals, making it one of the most attractive cash flow profiles in the lower middle market. Consolidation continues at a rapid pace driven by private equity interest in the predictable, scalable revenue model.
Who buys these: Private equity-backed consolidators, independent agency roll-up platforms, regional insurance brokerages seeking geographic expansion, entrepreneurial operators with insurance industry backgrounds, and financial buyers attracted to recurring revenue models
5–9×
Typical EBITDA multiple
$1M–$5M
Revenue range
Growing
Market trend
SBA Eligible
7(a) financing available
Recession Resistant
Essential service
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Minimum $500K EBITDA, 85%+ client retention rate, diversified book across industries and carriers, established staff beyond the owner-producer, preferably with some commercial lines specialization, clean E&O history, and transferable carrier appointments
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Key items to investigate when evaluating a Commercial Insurance Brokerage acquisition
What buyers typically pay for Commercial Insurance Brokerage businesses
5×
Low Multiple
7×
Mid Multiple
9×
High Multiple
Commercial Insurance Brokerage businesses in the $1M–$5M revenue range trade at 5–9× EBITDA in the lower middle market. Multiple variance is driven by recurring revenue percentage, owner dependency, client concentration, and growth trajectory. Growing market conditions support multiples at or above the midpoint.
Full valuation guide for Commercial Insurance BrokerageCommercial Insurance Brokerage acquisitions are SBA 7(a) eligible, meaning buyers can finance up to 90% of the purchase price. This expands the qualified buyer pool significantly and allows first-time acquirers to close with 10% down. Typical SBA terms run 10 years at prime + 2.75%. Sellers are often asked to carry a 5–10% note alongside SBA financing to satisfy the lender's equity requirement.
Typical acquirer profile for this segment
Regional or national insurance brokerage consolidators, private equity-backed roll-up platforms such as Acrisure, Patriot Growth, or PCF Insurance, independent strategic acquirers seeking geographic or niche expansion, and entrepreneurial buyers with producer backgrounds seeking ownership via SBA financing
What to investigate before buying a Commercial Insurance Brokerage business
Seller Intelligence
Who sells Commercial Insurance Brokerage businesses?
Independent agency owners approaching retirement age (55–70), solo or small-team producers who built a book of business over 20+ years, second-generation owners without succession candidates, and owner-operators seeking liquidity while remaining as producers
Typical exit timeline: 12–24 months
Commercial Insurance Brokerage businesses in the $1M–$5M revenue range typically sell for 5–9× EBITDA. Minimum $500K EBITDA, 85%+ client retention rate, diversified book across industries and carriers, established staff beyond the owner-producer, preferably with some commercial lines specialization, clean E&O history, and transferable carrier appointments
Commercial Insurance Brokerage businesses typically trade at 5–9× EBITDA in the lower middle market. The market is highly fragmented with growing demand, which supports premium multiples.
Commercial Insurance Brokerage businesses are SBA 7(a) eligible, making them accessible to first-time buyers. Asset purchase with earnout tied to client retention over 12–24 months post-close, typically 70–80% upfront and remainder contingent
Key due diligence areas include: Client retention analysis over trailing 3 years by account, premium volume, and commission revenue; Carrier appointment agreements and transferability of market access to acquiring entity; E&O claims history and current coverage terms including tail coverage obligations; Producer employment agreements, non-solicitation clauses, and compensation structures; Revenue concentration risk — top 10 clients as percentage of total commissions and contingent income.
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