Any advice for commercial insurance acquisitions?

June 06, 2025

by a searcher from Utah State University - Jon M. Huntsman School of Business in Spokane, WA, USA

I am looking to acquire a commercial insurance agency, and I am trying to figure out the best place to start. I have 3 1/2 years of experience as an agent, and I prefer the commercial space. It feels like the space has a lot of P/E interest, but I would be open to a smaller acquisition because of my experience and background. I know there are a few websites that list some agencies, but I think most of the time, they are priced too high. How would you recommend going about finding prospective agencies? Should I reach out directly to some, or are there cluster groups that might make sense to reach out to. I have experience in the crop insurance space as well, so that's a particular niche I could acquire. Lots of older individuals who own these types of agencies. Any other advice or things to watch out for in this space? Would love to briefly talk with someone who has acquired insurance agencies.

Reply by a searcher
from Cornell University in Schaumburg, IL, USA

Hi Ryan, ^redacted‌ has recently bought 2 commercial insurance brokerage firms using the SBA. He is very knowledgeable. FWIW I get agencyequity.com daily newsletter that might give you some leads. As far as valuations, they are currently rich by most measures as the likes of Arthur J. Gallagher continue to be highly acquisitive. Something in the E&S space will be higher still. Brace yourself to pay much more than 3-4x EBITDA like most of the scratch and dent companies go for down here in this part of the pond. I recently spoke to higher ups at USI and Graham Company. My takeaway is there are riches in niches whether its by industry or lines of business. Also, having a "hook" to peddle your wares helps. Do you really want to cold call every pizzeria or landscaping company in the greater Spokane area, or can you go upstream to the middle market rather quickly?

Reply by an investor
from Karel De Grote Hogeschool in Belgium

That's a fantastic question, and you're spot on about the commercial insurance space being attractive yet tricky to navigate. It's a sector we frequently dissect within our high-level M&A education at Dealfounders due to its unique dynamics. Your agent experience definitely gives you an edge for proprietary deals. Here's what we typically advise on finding agencies and key watch-outs, drawing from our Dealfounders playbook: On Sourcing (Go Proprietary): Direct Outreach is King: Your best bet for off-market gems. Leverage your crop insurance niche and network with local advisors (attorneys, accountants) – they're often the first to know about potential exits. Specialized Platforms: Supplement direct efforts with insurance-specific sites like AgencyEquity.com. Key Due Diligence Focus Areas: Client Stickiness & Producer Agreements: Crucial for understanding future revenue and team stability. Carrier Relationships & Tech Stack: Essential operational foundations to scrutinize. Regulatory Compliance: Non-negotiable; unseen liabilities are often the most costly. The commercial insurance space offers great recurring revenue. At Dealfounders, we underscore that success hinges on finding the right fit and executing smart, meticulous due diligence. Happy to jump on a quick call if you'd like a more personalized discussion on these strategies within the Dealfounders framework. Feel free to shoot me a direct message. Best,

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