Anyone have ideas on multiples for the insurance brokerage space?

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April 03, 2025

by a searcher from Queen's University in Kelowna, BC, Canada

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Reply by a searcher
from University of Pennsylvania in Indianapolis, IN, USA
My most recent clients in the space traded in 2021 and the larger benefits brokerage (~$8 million of EBITDA) fetched 17.4x / $139 million of TEV and the smaller MGA (~$4.5 million of EBITDA) traded for 12.5x / $57 million of TEV.

Many factors go into the multiple. If it is a smaller independent retail shop, it will trade for somewhere between 2-4x revenue. If it is an actual brokerage or MGA with some scale, it will trade higher. If it is an Excess & Surplus (E&S) MGA or brokerage with scale, then the multiple will be significant.

Happy to discuss more if you'd like - you're welcome to DM me.
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Reply by a searcher
from University of Pennsylvania in Indianapolis, IN, USA
It depends on the buyer. PE buyers are buying inorganic growth via customer acquisition because it is more cost effective. Giant aggregators, especially those that are publicly traded, must "swim or die," so they have to keep buying otherwise growth stops. Many that pay huge multiples are also realizing as many synergies as possible, so the real trick is to find an owner operated business where the company legacy and taking care of the employees is more important to the seller than wringing every last cent out of the sale.
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