Buying an insurance agency is a complex but potentially lucrative investment, often valued between . A successful acquisition requires rigorous due diligence on the "book of business," securing specialized financing, and planning for a multi-month transition period. 1. Valuation Models

Agencies are primarily valued based on their profitability and recurring revenue. Common methods include:

Often used for smaller books of business, where the value is roughly 1x to 1.5x annual commissions .

Before finalizing a deal, you must verify the health of the "book" (the list of active policies):