Insurance Brokerage — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
7×
Typical
9×
Max
12×
Revenue Model
Recurring
Capital Intensity
Low
A typical multiple of 9× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Insurance brokerages are among the highest-multiple SME businesses, typically trading at 7×–12× EBITDA due to highly predictable renewal commission income and strong regulatory barriers to entry. Specialist niches with pricing power and a diversified insurer panel attract the upper end. Consolidator appetite in this sector is strong globally, which has driven multiples upward. Key risks include regulatory pressure on broker commissions and concentration in key accounts.
Key Value Drivers
- Highly recurring renewal commission income
- Regulated with professional accreditation barriers to entry
- Specialist niche with pricing power
- Low capital intensity
- Cross-sell and upsell potential
Key Risks
- Regulatory pressure on broker commissions
- Consolidator competition for acquisition targets
- Key account concentration
- Insurer panel dependency
- Technology disintermediation risk
Related Industries
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.