Benefits Brokerage Valuation
Employee Benefits Brokerage Valuation Calculator & Exit Planning Built for Benefits Brokers
We built one platform that tracks your benefits brokerage value monthly, identifies exit gaps early, and ensures your personal finances align with your exit timeline.
1,000+ Businesses have joined YourExitValue.com
Most Benefits Brokers Have No Idea What Their Book is Actually Worth
Current Employee Benefits Brokerage Valuation Multiples (2026)
Employee benefits brokerage valuations are driven by recurring commission revenue. Here's the market:
Every business is different. That's why you need to track your value.
Included in Your Exit Value is a complete Exit Planning Assessment where you track your progress quarterly against your results from the previous quarter.
Know your number and watch it grow
Most business owners guess at their value. You'll know it with precision.
Our platform uses six proven valuation methodologies to give you a complete picture of what your business is worth today—and tracks how that number changes month over month. No more waiting for annual appraisals or paying $15K+ for outdated reports.
See your trends. Spot opportunities. Make informed decisions
What Actually Drives Benefits Brokerage Value
Your client service matters, but sophisticated buyers evaluate these factors that determine premium pricing:
Client Retention
90%+ Annual Retention
Benefits clients should be sticky—annual renewals create recurring revenue. 90%+ retention indicates strong relationships and service quality. Track retention by client and understand any losses. Lower retention significantly impacts valuation multiples.
High churn = book deteriorating
Revenue per Account
Growing Commission per Client
Average revenue per account indicates book quality. Larger employer accounts typically mean more commission. Growing revenue per client—through account growth or additional products—improves economics. Track and grow average account size.
Small accounts = less efficient
Book Composition
Balanced: Small, Mid, Large Groups
Client size mix affects economics and risk. Large groups provide significant revenue but concentration risk. Small groups are diversified but more work. Understanding your book composition helps position for appropriate acquirers.
Over-concentrated = risk
Product Mix
Medical + Ancillary Products
Beyond medical, ancillary products—dental, vision, life, disability, voluntary benefits—add revenue per account. Ancillary often has higher retention. Cross-selling additional products improves economics and client stickiness.
Medical-only = limited wallet
Carrier Relationships
Multiple Carrier Appointments
Carrier appointments determine which products you can sell. Relationships with multiple carriers provide client options. Bonus structures and override arrangements affect economics. Strong carrier relationships are valuable assets.
Limited carriers = client limits
Service Team
Account Managers, Service Staff
If you personally handle all accounts, the book is owner-dependent. Account managers and service staff who maintain client relationships independently demonstrate transferable operations. Building service depth increases value.
Owner-only = key person risk
How to Value an Employee Benefits Brokerage
The U.S. employee benefits brokerage market includes thousands of firms helping employers design and manage health insurance, retirement plans, and ancillary benefits programs. Benefits brokerages earn commission revenue from insurance carriers on enrolled employee lives.
EBITDA or SDE multiples are the primary valuation methods. Benefits brokerages typically sell for 3.0x to 5.0x SDE, or 6.0x to 10.0x EBITDA for larger agencies. These high multiples reflect the recurring nature of benefits commissions.
Revenue multiples for benefits brokerages generally range from 1.5x to 2.5x annual commission revenue. Agencies with a high percentage of group health commission revenue command the upper end.
The unique valuation factor for benefits brokerages is the commission book retention and employer client size mix. Benefits commissions renew annually as long as the employer client maintains their coverage, creating highly predictable revenue. Client retention rates of 90%+ are typical for well-run agencies. The employer client size mix matters: mid-market clients (50-500 employees) are the sweet spot, providing meaningful commission per account without the risk of losing a single large account. Agencies offering technology platforms for benefits enrollment and administration create deeper client integration.
Benefits brokerage M&A has been extremely active, with the same PE-backed aggregators acquiring in both P&C and benefits. Use our free calculator above to get your instant estimate, then track your value monthly with YourExitValue.
Frequently Asked Questions
What multiple do benefits brokerages sell for?
Benefits brokerages typically sell for 1.5x – 3.0x revenue or 4.0x – 8.0x SDE. Books with high retention, diversified clients, and service staff command premium multiples.
How does retention affect benefits brokerage value?
Critically. 90%+ retention indicates strong relationships. Lower retention means the book is deteriorating. Retention directly drives valuation multiples.
Who buys benefits brokerages?
Larger benefits brokerages, insurance agencies adding benefits, PE-backed insurance platforms, and P&C agencies seeking cross-sell opportunities.
Does product mix affect benefits value?
Yes. Ancillary products add revenue per account and often have higher retention. Medical-only books capture less wallet share.
How important is having service staff?
Important. Owner-dependent books face key person risk. Service staff who maintain relationships independently demonstrate transferable operations.
What's the fastest way to increase my benefits brokerage value?
Three high-impact moves: 1) Build service staff to reduce owner dependency, 2) Cross-sell ancillary products to existing clients, 3) Focus on client retention through service quality.