Given the massive number of M&A transactions in the IA system over the past decade, it has created an abundance of misinformation about the M&A environment for independent agency owners. In an effort to clear up some of the misconceptions, we are going to engage in a game of two truths and a lie.

Truth #1

The Independent Agency (IA) system is undergoing massive consolidation and an unprecedented wealth transfer. Macro-economic forces are causing agency owners to transition ownership every year. These forces include:

Aging principals: 37% of agency principals are over 61
Record-high agency valuations: 42% increase in 8 years
Billions of dollars of investments being infused into the IA system: estimated $85B invested or available for investment
AI-fueled technological uncertainty

According to Optis Partners, there have been 7,633 M&A agency and broker transactions since 2016. To measure the increase in M&A activity, we looked at 5-year increments; from 2013 to 2017, there were 2,161 transactions, and from 2021 to 2025, there were 4,455. That represents a 106% increase in M&A transactions over those 5-year time frames. While the M&A market has cooled off from its peak in 2021 (33% decrease), we are still in an environment with a bounty of hungry buyers and a decreasing number of sellers.

Truth #2

Agency values are at record levels. According to IA Valuations' data, the average EBITDA valuation multiple is 8.5 across all combined revenue categories, and the revenue multiple in an external sale is 3x regardless of the profile of an insurance agency. Agency values rose another 8.7% in 2025.

Special Reports /

Two truths and a lie about the insurance agency M&A environment

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