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Insurance Agency EBITDA Multiples: 2024 Report

The inherent uncertainty of the M&A market over the last 18 months has underscored the importance of context for supplementing a full understanding before we can gain a better sense of what to expect in 2024. Having advised on a record number of insurance agency M&A transactions, we have used our unusually large dataset in tandem with access to third-party M&A databases to provide up-to-date averages of EBITDA multiples for insurance brokerages in 2024. 

Here’s what we found: 

Insurance Agency EBITDA Multiples: 2024

These multiples represent significant growth since last year, which is a promising development for insurance M&A. So, how did we get here?

What Is Affecting Insurance Agency EBITDA Multiples?

Starting in H2 2022, the insurance M&A market has seen a notably difficult 18-month period, afflicted with high interest rates, lowered deal volumes, and lowered valuations. While interest rates have indeed risen, the reality is that the deal activity - both in terms of valuations and volume - has remained remarkably robust when compared to other industries, which saw deal volume decline to all but a standstill over the last year and a half. 

EBITDA Multiples for Insurance Agencies, 2018-2024 (Projected)

M&A Deal Volume for Insurance Agencies, 2018-2024 (Projected)

The most important news this data offers is that insurance M&A is not actually in the tailspin that many “experts” claim it to be. While deal volumes and multiples for larger insurance agencies have certainly taken a hit in the economic decline since H2 2022, the overall M&A outlook remains much stronger. 

Where we have seen changes in the insurance M&A market over the last two years, however, is that the acquirer universe has become markedly more complicated. There are now significantly more buyers in the market as more PE firms have become bigger players in insurance M&A, and the range of valuations and deal structures has also changed appreciably, with buyers relying more on equity in transactions than in years past.

This raises an important question:

What Should Insurance Agency Owners Expect in 2024? 

As the market in H1 2024 shows signs of improvement, we’ve spoken with many insurance brokers who are eager to start running a deal process to sell their agencies, effectively trying to “get out while the getting’s good.” While it is possible to sell your brokerage in 2024, business owners need to be aware of the following factors: 

Insurance Agency EBITDA Multiples Will Likely Continue To Rise

Nothing is guaranteed, of course, but the modest increases in EBITDA multiples for insurance brokers we’ve already seen in our own networks are definitely promising. So much of this conversation hinges on whether or not the Federal Reserve will follow through on the projection of lowering interest rates, which have posed a major challenge to sellers and buyers over the last 18 months. If they do, then we can expect to see valuations and, by extent, EBITDA multiples for insurance agencies rise.

Small to Midsize Brokerages Are Becoming More Valuable

Of the major buyers monitored in our SF Index, we noted the most stable group of recorded acquisitions appears to benefit middle- and lower-middle-market agencies. 

Upon examining the deal activity between 2022-2023, for example, we noted an increase in deal volume when we removed the two largest acquirers, who temporarily slowed their processes as interest rates rose and larger agencies became more costly to buy.

SF Index Deal Volume 2022-2023, Segmented

Projections indicate that interest rates are likely to decrease in 2024, which will make larger brokerages a profitable option for acquirers again. The last few years, however, have revealed an innate resiliency in smaller insurance agencies that makes them a more evergreen option for both private equity and strategic acquirers.

Deal Processes Will Be Longer and More Complicated Than Usual

In deals on which we’ve consulted and those we’ve monitored, our teams have noted a remarkably larger number of deals in which buyers take on a greater amount of equity in their payout to compensate for the higher cost of debt and equity capital for potential buyers. 

This means that sellers should expect a wider variety of offers when running a deal process, which makes it more important than ever to work with an experienced M&A advisor. Our data from the last five years offers strong indications that self-representing agencies earned, on average, 30% less than those led by an advisor, as indicated by the table below.

EV/Pro Forma EBITDA: Advisor-Led vs. No Advisor

Want More Information on EBITDA Multiples for Insurance Agencies?

Contact: Mike Fletcher

Managing Partner, Sica | Fletcher

About Sica | Fletcher:  Sica | Fletcher is a strategic and financial advisory firm focused exclusively on the insurance industry. Founders Michael Fletcher and Al Sica are two of the industry's leading dealmakers who have advised on over $16 billion in insurance agency and brokerage transactions since 2014. According to S&P Global, Sica | Fletcher ranked as the #1 advisor to the insurance industry for 2017-2023 YTD in terms of total deals advised on. Learn more at


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