Acquire independent P&C agencies generating $1M–$5M in revenue, consolidate carrier relationships, and create a highly predictable recurring-revenue platform primed for PE exit.
Find Insurance Agency Platform TargetsThe U.S. independent insurance agency market is one of the most actively consolidated sectors in the lower middle market. With 36,000+ fragmented owner-operated agencies, abundant SBA-eligible targets, and sticky renewal-driven revenue, it offers a compelling roll-up opportunity for disciplined acquirers.
Recurring commission income, high retention rates, and carrier appointment barriers create durable cash flow. PE-backed aggregators pay 6–9x EBITDA at exit, rewarding buyers who consolidate fragmented books, centralize operations, and demonstrate organic retention above 87%.
Minimum $500K EBITDA
Platform agencies must generate at least $500K in EBITDA with diversified revenue across commercial and personal lines, ensuring sufficient cash flow to fund operations and service acquisition debt.
Diversified Carrier Appointments
Strong appointments with five or more A-rated carriers across commercial, personal, and specialty lines, with no single carrier representing more than 35% of placed premium volume.
Tenured Licensed Staff
Agency must employ at least three licensed producers or CSRs capable of managing the book independently, reducing key-person risk and supporting post-acquisition add-on integration.
Retention Rate Above 87%
Trailing three-year policy retention must exceed 87% across all lines, with documented renewal workflows in an established agency management system such as Applied Epic or HawkSoft.
$150K–$400K EBITDA
Add-on targets are smaller owner-operated agencies generating $150K–$400K EBITDA, typically retirement-driven sales where the owner will stay 12–24 months to transition client relationships.
Geographic Adjacency
Target agencies operating in contiguous markets or the same state as the platform to preserve existing carrier appointments and avoid costly new-state licensing and compliance overhead.
Complementary Line Mix
Prioritize add-ons with commercial lines concentration or niche specialty books such as contractors, habitational, or trucking to diversify the platform's revenue and carrier contingency income.
No Single Client Over 10%
Add-on books must show no single commercial account representing more than 10% of agency revenue, limiting client concentration risk that could impair post-close retention performance.
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Carrier Contingency Optimization
Consolidating premium volume under unified carrier contracts unlocks higher profit-sharing tiers and contingency bonuses, directly improving EBITDA margins without adding headcount or revenue.
Centralized Back-Office and CSR Functions
Migrating all agencies onto a single AMS platform and centralizing policy servicing reduces redundant staff costs, improves renewal workflows, and increases producer capacity for new business.
Cross-Sell Commercial Lines Into Personal Books
Acquired personal lines books present immediate cross-sell opportunities for commercial coverage, increasing revenue per household and improving retention by deepening multi-policy client relationships.
Organic Growth Through Producer Hiring
Platform scale and carrier breadth attract experienced producers who cannot access quality appointments independently, accelerating organic premium growth across all acquired agency locations.
A well-executed insurance roll-up targeting 8–12 agencies and $3M+ in consolidated EBITDA positions for a PE-backed aggregator exit at 6–9x EBITDA. Buyers pay premium multiples for demonstrated retention above 87%, clean carrier appointment portfolios, and centralized management infrastructure reducing founder dependency.
Most PE-backed aggregators look for platforms with $2M–$3M+ in EBITDA across at least five locations, though strong single-platform agencies with $1.5M EBITDA and clear add-on pipelines attract serious interest.
No. Most carrier agreements require prior written consent to assign. Buyers must engage carriers early in due diligence to confirm transferability and avoid closing delays or appointment terminations.
Asset purchases with 10–15% seller notes tied to 12-month retention thresholds are most common, aligning seller incentives with client retention and protecting the buyer from immediate book runoff post-close.
SBA 7(a) loans work well for platform acquisitions up to $5M. Add-on acquisitions are typically funded through platform cash flow or seller notes, as SBA affiliation rules complicate financing subsequent deals.
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