: Standard agencies are often valued at 1.5x to 3x gross revenue.
: Some sources indicate that upon exit, State Farm pays out roughly 1x annual commission over 20 years. How to value an insurance agency | Higginbotham buying a state farm book of business
: Most new agents enter through an "aspirant" or trainee program rather than a direct purchase. : Standard agencies are often valued at 1
Unlike independent agents who can sell their business on the open market, State Farm "books" are typically rather than sold in a traditional sense. buying a state farm book of business
While you aren't "buying" the title to the clients, you are often paying for the or the assets of an existing agency. Typical valuations in the insurance industry include: