Selling your insurance brokerage: valuation, buyers and succession
You run a brokerage firm and are considering a sale or succession? We support owners from the first valuation to the confidential handover - with buyers who will continue your portfolio and your team.
Arrange a confidential initial consultation →01Overview
Company sale, portfolio sale or succession - which fits your brokerage?
Selling an insurance brokerage is not a standard transaction. Unlike a manufacturing business, the value of your firm lies mainly in recurring commission income, long-standing client relationships and your employees' expertise. Buyers therefore ask different questions than they would for an industrial company: How stable is the portfolio? What are the lapse rates? How dependent is the firm on you as its owner?
There are three basic paths: selling the entire company, selling the client portfolio, or a succession arrangement within the family or among employees. Which path is right depends on the size and structure of your firm, your personal objectives and your time horizon. Our detailed comparison can be found in our German-language article Maklerbestand oder Maklerunternehmen verkaufen.
Company sale
The entire firm - portfolio, staff, processes, brand - transfers to the buyer. For established businesses with a team and structures, usually the most attractive route financially.
Portfolio sale
Only client contracts and commission rights transfer. A pragmatic option for smaller, strongly owner-managed offices without significant corporate structure.
Succession
Handover to family members, employees or an external successor - often gradually over several years. Requires early planning and clear contractual terms.
02Sale paths in detail
Brokerage firms we work with
We support owners of brokerage firms of various orientations and sizes - from regional commercial brokers to specialised industrial brokers. The prerequisite is an established, documented portfolio with sustainable commission income. An overview of our industry work is available on our Industries page.
- Commercial and industrial brokers with a corporate-client focus
- Private-client brokers with a stable, granular portfolio
- Specialist brokers for niche segments (e.g. employee benefits, cyber, marine)
- Brokerage groups and network structures with multiple offices
- MGAs with their own underwriting capacity
What buyers assess in your firm
Purchase-price determination for brokerages follows its own rules: multiples on commission or EBITDA are always the result of an analysis, never its starting point. How valuation works in detail is explained in our German-language article Versicherungsmakler verkaufen: Wie wird der Kaufpreis wirklich ermittelt? The following factors largely determine the level of offers:
Commission structure and portfolio quality
Buyers distinguish between new-business and renewal commission, between commercial and private-client segments, and between lines with different lapse probabilities. Decisive factors are lapse rates over several years, the age structure of the portfolio and distribution across client groups: a granular portfolio with high client retention is valued differently from a few large accounts with cancellation risk.
Client retention, documentation and owner dependency
The more client relationships depend on you personally, the larger the discount. Buyers examine whether contracts, advice records and processes are documented well enough for the portfolio and service to continue without you. The degree of digitalisation - brokerage management software, CRM, digital client communication - also feeds directly into the valuation.
Contracts, licences and regulatory matters
Transferability of brokerage contracts, commission commitments from insurers, trade-law authorisation and ongoing obligations towards clients and staff are among the most sensitive points of any transaction. These questions cannot be answered in general terms: they depend on your legal form, your contracts and the chosen transaction model. We structure the process so that these points are identified early and clarified with the legal advisers involved - do not go it alone here before the transaction structure is in place.
Information we need for an initial assessment: commission statements for the past three years, a portfolio overview by line and client segment, lapse rates, staff and cost structure, and details of administration systems and your role in day-to-day operations. Based on this you will receive an honest initial assessment of your options in a confidential initial consultation.
03The sale process
Preparation, buyer selection, due diligence and handover
1. Preparation and valuation
We start with a sound company valuation and the preparation of sale-relevant documents: adjusted commission and profit figures, portfolio analyses, staff overview and a presentation of your market position. We close documentation gaps before buyers find them - because every unanswered question in due diligence costs negotiating leverage.
2. Confidential buyer approach
We specifically approach buyers that fit your firm: brokerage groups and consolidation platforms, strategic industry buyers and financial investors with buy-and-build approaches. All interested parties initially receive only anonymised information. Your identity, your clients and your staff remain protected until a non-disclosure agreement is in place and serious interest is demonstrated.
3. Due diligence and negotiation
In due diligence, buyers examine the portfolio, contracts, finances and regulatory matters. We prepare you for each review round, answer follow-up questions in a structured manner and negotiate the purchase price, payment structure - such as earn-out components for growth-dependent price elements - as well as warranties and your potential involvement after the sale.
4. Handover and succession
The sale does not end with the signature. Client and commission transfers, informing staff and familiarising the buyer with client relationships determine whether the portfolio remains stable after the ownership change. We plan the handover from the outset - if appropriate as a gradual succession over an agreed period.
04Frequently asked questions
Questions from brokerage owners about selling
What is the difference between a company sale and a portfolio sale?
In a company sale, the entire firm - portfolio, staff, processes, brand - is transferred and generally achieves the higher total value for established businesses. In a portfolio sale, only client contracts and commission rights transfer; this is mainly pragmatic for smaller, strongly owner-managed offices without corporate structure. See our German-language article Maklerbestand oder Maklerunternehmen verkaufen for details.
Which documents are needed for an initial assessment?
Helpful documents include commission statements for the past three years, a portfolio overview by line and client segment, lapse rates, staff and cost structure, and information on administration systems and your role in day-to-day operations.
How does the sale remain confidential?
Interested parties initially receive only anonymised information. Identity and client data are disclosed only after a non-disclosure agreement and in graduated steps. Staff and clients learn of the sale only when the process requires it.
When should I start preparing?
Ideally two to five years before the planned sale. During this time you can reduce owner dependency, complete documentation and upgrade the portfolio - all factors that directly influence the purchase price.
Who buys brokerage firms?
Brokerage firms and groups, consolidation platforms, financial investors with buy-and-build strategies and, in individual cases, insurers. Which buyer group fits depends on the size, specialisation and structure of your firm.
05Start now
Let's talk about your brokerage firm.
Confidential, non-binding and at eye level: in an initial conversation you will receive an honest assessment of your sale options - and learn which steps are worthwhile for you.