Group Health Broker Benchmarks
What a group health and employee benefits book of business actually sells for, in commission multiples and EBITDA multiples, cut by book size, revenue type, and the factors that move the number. The reference an agency owner uses before a sale or an acquisition.
A benefits book sells on the durability of its recurring commission, not on top-line revenue. Two numbers matter: the commission multiple, used when only the book of business changes hands, and the EBITDA multiple, used when an entire agency is sold. Because group health commission is level and recurring, a clean, high-retention benefits book behaves like an annuity, and buyers pay annuity-like multiples for it.
5x–7x EBITDA
What agencies over $1M in revenue typically command on an EBITDA basis. On a book-only sale, expect a multiple of recurring commission instead, driven almost entirely by retention quality.
Table 1: Multiple by book / agency size
| Size | Primary multiple | Basis | Buyer type |
|---|---|---|---|
| Small book (<$250K comm.) | 1.5x–2.5x | Recurring commission | Local agency, producer |
| Mid book ($250K–$1M) | 2x–3x | Recurring commission | Regional agency |
| Agency ($1M+ rev) | 5x–7x | EBITDA | Aggregator, PE-backed |
| Platform ($5M+ rev) | 7x–10x+ | EBITDA | National consolidator |
The jump from a commission multiple to an EBITDA multiple around the $1M mark is the single biggest value inflection for a growing agency. Crossing into EBITDA-based pricing, and being run efficiently enough to show real EBITDA, is what moves an owner from a 2x-commission outcome to a 5x-plus-earnings outcome.
Table 2: Multiple by revenue quality
| Revenue type | Effect on multiple | Why |
|---|---|---|
| Recurring group health | Highest | Level, renews annually, annuity-like |
| Recurring ancillary | High | Sticky, higher commission rate |
| One-time / consulting fees | Lower | Resets each period, not durable |
| Owner-dependent accounts | Discounted | May not survive the transition |
Table 3: What raises vs. lowers the multiple
| Factor | Pulls multiple | Why |
|---|---|---|
| Retention 90%+ | Higher | Predictable, annuity-like cash flow |
| Retention below 80% | Lower | Leaky bucket, priced as risk |
| Low client concentration | Higher | No single group can sink the book |
| Top group >5–20% of revenue | Lower | Concentration risk discounted |
| Team / process-based service | Higher | Portable, survives owner exit |
| Owner-dependent relationships | Lower | Walks when the owner does |
| Documented systems & data | Higher | Clean diligence, financeable deal |
Table 4: Worked deal examples
| Profile | Base | Multiple | Implied value |
|---|---|---|---|
| Solo book, $200K commission, 92% retention | $200K | 2.5x | ~$500K |
| Regional book, $700K commission, 88% retention | $700K | 2.5x | ~$1.75M |
| Agency, $1.5M EBITDA, low concentration | $1.5M | 5.5x | ~$8.25M |
| Platform, $5M EBITDA, advisory-heavy | $5M | 8x | ~$40M |
How to raise your own multiple before a sale: push retention above 90% and document it, because that is the metric buyers weight most. Reduce client concentration by formalizing multi-contact relationships on your biggest groups. Shift service from owner-led to team-and-process so the book is portable. Keep clean financials so a buyer can finance the deal.
Make this page yours: add a row to Table 4 with a real (anonymized) deal you have done or been quoted. One genuine comp makes this the page brokers cite.
Make this page yours: add a row to Table 4 with a real (anonymized) deal you have done or been quoted. One genuine comp makes this the page brokers cite.
Frequently asked questions
- What is an employee benefits book of business worth?
- Smaller books typically sell at 1.5x to 3x recurring commission. Agencies over $1M in revenue usually sell on EBITDA at 5x to 7x, and larger platforms can reach 7x to 10x or more.
- What matters most when valuing a benefits book?
- Client retention. A book retaining 90%+ is priced as a stable annuity and commands a premium multiple; a book below 80% is discounted as a leaky bucket regardless of its current revenue.
- Why do larger agencies get higher multiples?
- They cross from commission-multiple pricing to EBITDA-multiple pricing, attract better-capitalized buyers (aggregators and PE-backed consolidators), and usually have less owner dependence and lower concentration risk.
- Commission multiple or EBITDA multiple, which applies to me?
- If you are selling just the book of business, buyers use a multiple of recurring commission. If you are selling the whole agency as an operating business, they use EBITDA.
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Sources & methodology
- EBITDA multiples: Exitwise, Insurance Agency Valuation Rule of Thumb, 2026 (5x–7x for $1M+ revenue agencies).
- Retention as the primary value driver: Renegade Insurance, Retention Rate vs. Revenue, 2026 (top agencies 96%, most 80–88%); The Journal / MillyBooks, How to Value an Agency Book of Business, 2025 (90%+ retention commands premium multiple).
- Book-sale valuation method and concentration risk: DC Business Toolkit, How to Value an Insurance Book of Business, 2025.
- Recurring-commission book example: BizQuest listing, established health book, $8.4M premium, 90%+ retention, $260K projected 2026 commission.
- Note on figures: multiples are directional market ranges from agency M&A sources; actual deal pricing depends heavily on retention, concentration, and structure.
