How much does a Insurance Brokerage cost to buy?

A typical Insurance Brokerage sells for 4x to 7x seller's discretionary earnings. With estimated SDE of $486K, expect to pay roughly $1.9M to $3.4M before adjustments for assets, debt, growth, and local market quality.

How much does it cost to start a Insurance Brokerage?

Startup costs range from $25K to $150K depending on location, equipment, and scale.

Service

Insurance Brokerage

Q: What are the profit margins for a Insurance Brokerage?

The average profit margin for a Insurance Brokerage is around 27%. 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.

Renewal commissions, sticky books, and zero one-off project energy

Bottom line

Worth studying, but do not buy without strong local proof.

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.

See listings →Compare ↔

Share LinkedInReddit HN

Acquisition score

Strong

Avg Revenue

$1.8M

Profit Margin

27%

Acquisition Multiple

4x - 7x

Startup Cost

$25K - $150K

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

Low End

$500K

Typical

$1.8M

High End

$5.0M

Real Acquisitions in This Category

SBA 7(a) change-of-ownership loans · NAICS 524210 · Insurance Agencies and Brokerages

Deals tracked

646

158 in last 24 mo

Median loan

$737K

$388K–$1.3M p25/p75

Implied deal size

$867K

median · ~85% LTV

Charge-off rate

—

not enough resolved loans

Deal Size Distribution

<$150K

$150K–500K

181

$500K–1M

183

$1M–2M

162

>$2M

Deal Flow Over Time

12-month momentum

+16.4%

deal volume vs prior 12 mo

Median loan Δ

+20.0%

85 recent · 73 prior

Financing Profile

Median rate

9.92%

10% fixed · last 24 mo

Median term

120 mo

standard 10-yr

Collateralized

of loans secured

Median jobs

supported per deal

Top lenders in this space

Live Oak Banking Company152

United Midwest Savings Bank National Association100

Byline Bank43

Bankwell Bank33

Mechanics and Farmers Bank27

Where deals happen

TX86

FL83

CA48

NY29

GA24

AZ19

AL19

SC18

CO18

OK18

Franchise vs independent

Franchised acquisitions finance at $467K median vs $761K for independents — a -39% franchise discount. Franchises make up 7% of deals tracked.

Recent Comparable Deals

Closed	State	Loan	Implied deal	Jobs	Franchise
Mar 2026	NC	$382K	$449K	6	—
Mar 2026	IN	$435K	$512K	9	—
Mar 2026	TN	$149K	$175K	2	—
Mar 2026	MS	$394K	$464K	4	—
Mar 2026	FL	$480K	$565K	6	—
Mar 2026	PA	$2.3M	$2.7M	16	—
Mar 2026	MI	$169K	$199K	2	—
Mar 2026	FL	$670K	$788K	3	We Insure
Feb 2026	ID	$195K	$229K	3	Goosehead Insurance
Feb 2026	TX	$350K	$412K	1	—

Volume rank #8/544Deal-size rank #244/544Momentum rank #106p90 loan: $2.4MData as of Mar 2026

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

$-30267/mo

after debt service

Deal price — $6.3M

Range: $6.3M (4×) to $14.4M (7×+)

Down payment — 15% ($945K)

SBA minimum equity injection is 10% for change-of-ownership

Interest rate — 10.00%

SBA median for this category: 9.9%

Loan term — 10 years (120 mo)

SBA median for this category: 120 months

Down payment

$945K

15% equity injection

Loan amount

$5.4M

85% SBA-financed

Monthly payment

$71K/mo

$3.1M total interest

Monthly profit

$41K/mo

at 27% margin

Monthly cash flow after debt service

$-30267/mo

Margin does not cover debt service at these terms. Lower the deal price, increase the down payment, or extend the loan term.

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.