Finance & Insurance Businesses for Sale

Most finance and insurance businesses sell for 2 to 10 times annual profit, with the range reflecting how predictable the revenue is and whether the business has a management team in place. Owner-operated agencies and advisory practices typically trade at 2 to 5x SDE. Businesses with subscription revenue, multiple licensed advisors or producers, and low client concentration can reach 5 to 10x EBITDA. Use the SBA loan calculator to model financing scenarios.

Ask for three years of financials with revenue broken out by type: recurring versus one-time, fee-based versus commission, subscription versus transaction. Then get the licensing details, renewal rates or retention data, and a roster of who on the team manages which client relationships. Understanding what the business earns when the owner is on vacation for three weeks tells you more than almost anything else about transferability.

Good starting points: What percentage of revenue is recurring or renewing, and what's the historical retention rate? What licenses are held at the company versus individual level, and what does the transfer process look like? Who manages client relationships day to day, and how long have those people been with the business? Is any single client or institution more than 15% of revenue? What's the compliance record, and are there any open regulatory issues?

Rejigg is built for small business acquisitions, including finance and insurance. You can browse finance and insurance businesses for sale on Rejigg and connect directly with sellers without a broker in the middle. Listings include financial details and ownership information so you can filter for deals that match what you're looking for.

The answer varies significantly by subcategory. Insurance carrier appointments often require written consent from each carrier and some require a fresh application. State lending and mortgage licenses may need regulatory approval or a new application by the buyer. Fintech licenses are sometimes held at the entity level and transfer with the company, which simplifies things. Starting this review early, ideally before you're deep in diligence, prevents licensing issues from becoming deal delays at the finish line.

Lenders respond well to businesses where most revenue is recurring, where the business has been profitable for at least three years, and where the client base is spread across many relationships rather than concentrated in one or two large accounts. A clean compliance record and current licenses also help. Use the SBA loan calculator to see what different deal sizes look like at current rates.