RIA, Insurance & Broker-Dealer Business Valuations

Serving Miami, Miami-Dade County & South Florida.

Industry Description

This category covers registered investment advisors (RIAs), insurance agencies, and broker-dealers — businesses where value is driven primarily by recurring fee or commission revenue and client/book retention rather than physical assets.

Common Business Characteristics

Revenue driven by AUM-based fees, commissions, or renewal/trail income
Value closely tied to client retention and advisor/producer relationships
Regulatory licensing (FINRA, state insurance departments) affects transferability
Succession and advisor-retention risk are central valuation issues

Valuation Considerations

Analyzing revenue quality: recurring AUM fees vs. transactional commission income
Assessing client concentration and advisor/producer key-person risk
Understanding regulatory transfer restrictions in a sale
Benchmarking against typical AUM or revenue-multiple frameworks for the segment

Benchmark Data

$1M–$5M Net Sales tier — Insurance Agencies/Brokerages (national): MVIC/Net Sales 1.63 · MVIC/Gross Profit 1.94 · MVIC/SDE 5.10 · MVIC/EBITDA 6.46 Sector statistics (Insurance Agencies/Brokerages, national): ~434,239 establishments · 17.5% average profit margin · $185,000 revenue per employee · 2.5 average employees · $64,846 average wages per employee

This covers the insurance-brokerage segment of this industry specifically. No comparable national benchmark exists for RIA/registered-investment-advisor or broker-dealer businesses specifically, so this figure is most directly applicable to the insurance side of this page.

National industry data, sourced from Minerva Valuations' own published industry reference material and cross-checked for consistency before use. Not Miami-specific — shown as a representative national reference point, not a claim about the Miami market specifically.

Relevant Services

Business Valuations · M&A Advisory

Valuation & Advisory Support

Miami Valuator is a valuation-driven advisory firm supporting transactions, disputes, tax matters, financial reporting, and M&A execution — anchored in disciplined analysis.

Professional standards: Our analyses are prepared with reference to USPAP, American Society of Appraisers guidance, AICPA valuation standards, and CFA Institute principles.

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