Insurance Brokerage
Renewal commissions, sticky books, and zero one-off project energy
Independent insurance brokerages sell and service policies for businesses and households, earning commissions on new policies and renewals. The magic is the book of business: once a client is bound, revenue can recur annually with surprisingly low incremental labor.
Avg Revenue
$1.8M
Profit Margin
27%
Acquisition Multiple
4x - 7x
Startup Cost
$25K - $150K
Difficulty
4/5
How It Works
The brokerage sources clients through referrals, outbound producers, niche expertise, or local relationships. It places coverage with carriers, earns commissions, and keeps the account through renewals, policy changes, and claims support. Growth comes from retaining the book, cross-selling more lines, and recruiting productive agents.
Revenue Range
Real Acquisitions in This Category
SBA 7(a) change-of-ownership loans · NAICS 524210 · Insurance Agencies and Brokerages
Deal Size Distribution
Deal Flow Over Time
Financing Profile
Recent Comparable Deals
| Closed | State | Loan | Implied deal | Jobs | Franchise |
|---|---|---|---|---|---|
| Dec 2025 | FL | $5.0M | $5.9M | 14 | — |
| Dec 2025 | GA | $880K | $1.0M | 7 | — |
| Dec 2025 | TX | $480K | $565K | 1 | — |
| Dec 2025 | OH | $4.3M | $5.1M | 2 | — |
| Dec 2025 | AR | $171K | $201K | 3 | — |
| Dec 2025 | IL | $235K | $277K | 3 | — |
| Dec 2025 | LA | $1.1M | $1.3M | 3 | — |
| Dec 2025 | OK | $2.3M | $2.7M | 5 | — |
| Dec 2025 | PA | $902K | $1.1M | 1 | — |
| Dec 2025 | PA | $150K | $177K | 1 | — |
Source: SBA 7(a) FOIA dataset, filtered to acquisitions (loans where business age is "Change of Ownership"). Implied deal size assumes an 85% loan-to-purchase ratio, a common SBA change-of-ownership structure. Charge-off rate shown only when 10+ loans have resolved (paid in full or charged off). Interest rates reflect last 24 months only. Actual deal values vary with equity injections, seller financing, and working capital terms.
Pros
- +Recurring renewal revenue makes the model unusually sticky
- +High switching friction once commercial accounts are placed correctly
- +Can scale through producers without huge capex
- +Books with niche specialization often command premium multiples
Cons
- -Producer retention matters — rainmakers can walk
- -Carrier relationships and compliance are critical
- -Acquisition prices are often higher than blue-collar service businesses
- -Integration risk is real when buying a book from a founder-led shop
Best For
Buyers who like recurring revenue, relationship sales, and regulated professional services
Operating Costs
Main costs are producer compensation, account managers, licensing, E&O insurance, and office overhead. Grand View Research estimates North American insurance brokerage revenue could reach $145.3B by 2030, growing 7.5% annually, which reinforces how massive and durable the commission pool is for small local brokerages with strong retention.
SBA Financing Estimator
Adjust the deal — see if it cash flows after debt service
Estimates only. Excludes owner compensation, capex, working capital draws, and taxes. Margin assumes average occupancy and volume. Actual SBA terms vary by lender and borrower profile.
Where to Buy
Industry report highlighting North America's 30.5% share of global brokerage revenue
Regional market outlook projecting $145.3B revenue by 2030
Broker marketplace where independent agencies and insurance books are listed for sale
Acquisition Score
Scores margin (30), entry multiple (25), SBA market depth (20), category risk (15), and deal momentum (10). Higher = better acquisition candidate.
Quick Facts
- Category
- service
- Difficulty
- 4/5
- Buy price
- $7.2M–$12.6M
Buyer's Toolkit
Essential tools to get started
Some links may be affiliate links. We only recommend tools we'd use ourselves.
Ready to Buy? Start Here →
Largest business-for-sale marketplace in the US
SBA loans and business acquisition financing — get funded fast
ROBS financing — use retirement funds to buy a business tax-free
Bookkeeping for small business owners — hands-off financials
Some links may be affiliate links. We only recommend tools we'd use ourselves.
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