Shorerock Loans, a small-business funding service in Marietta, Georgia, explains what it costs to buy an insurance agency in Cobb County: how price relates to commission revenue and retention, due diligence steps and funding options, with county insurance agency counts.
How Much Does It Cost to Buy an Insurance Agency? What Cobb County, GA Owners Should Know
No fixed price applies to an agency. Buyer and seller agree a figure, often expressed as a multiple of annual commission revenue or of earnings, adjusted for how much of the book renews and how the business is split between personal and commercial lines. For current price comparisons, ask the seller's advisor or an agency valuation specialist.
Cobb County had 449 insurance agency employers in 2023 with 5,795 employees, and 72.2% had fewer than five employees (County Business Patterns). Another 936 agencies had no payroll in the 2024 Nonemployer Statistics.
Cost to Buy an Insurance Agency Around Marietta, GA
Illustration only, invented figures: an agency earns $400,000 a year in commissions, 88% of it renewals. A buyer and seller agree on a price of $720,000, which is 1.8 times commissions by our arithmetic. If retention falls to 80% in the first year, renewal income drops from $352,000 to $320,000 ($400,000 x 88% and x 80%), so the price should be tested at the lower figure.
Insurance Agency Purchase
- Each carrier's commission statements, going back three years
- Retention by line and by producer
- The carrier appointments and whether a buyer will be appointed
- Producer and staff contracts, with any non-solicitation clauses
- The agency management system and its data
- Lease and office costs
Buying an Insurance Agency for Cobb County, GA Businesses
An agency deal can include an earn-out or a price adjustment tied to retention, protecting the buyer if clients leave. Seller financing can carry part of the price. The buyer's existing agency, if there is one, may also stand behind the funding.
How to Buy an Insurance Agency? Answers for Marietta, GA Owners
Agree a letter of intent, complete due diligence on the items above, finalize price and retention terms, arrange funding, and close with carrier approvals in place. A term loan funds the price after the down payment and any seller note.
Business Loans for Insurance Agency: Notes From Marietta, GA
A partner reviewing an agency purchase reads the commission history, retention, the buyer's experience and the deal terms. Payments must fit inside retained commissions after staff and office costs. More on the insurance agency page; county data on the Marietta, GA page. Ready? Start a request.
Carrier approvals and appointments
Carriers decide whether to appoint a buyer and whether an agency's contracts transfer. A deal without the carriers' approval can leave the buyer with policies it cannot service. Start those conversations early and make closing conditional on them.
Keeping clients through the transition
Introduce yourself to the largest accounts with the seller, keep the staff who service them, and avoid changing carriers in the first year unless clients ask. Retention in the first year is the figure that decides whether the price was right.
Producer and staff payroll at Cobb County, GA agencies, our arithmetic
The county's 449 insurance agency employers (NAICS 524210) paid $708.6 million to 5,795 employees in 2023 (County Business Patterns): about $122,278 per employee and about 13 employees per agency (our arithmetic). Commissions paid to employed producers sit inside that payroll total.
For a buyer, the useful question is which of those salaries the book depends on. A producer who holds the client relationships and walks away at the sale may take renewals along, so the purchase file should name each producer, the premium they service and whether they have agreed in writing to stay.
Insurance agencies in ZIP 30060
ZIP 30060 had 33 insurance agency employers in 2023 (ZIP Code Business Patterns), out of 449 in Cobb County, which by our arithmetic is 7.3%.
By Shorerock Loans · Updated
