Diversified Insurance Brokerage, Medicare & Long-Term Care, Southeast US

$2.6M

Revenue

$669K

SDE

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Full Editorial Writeup

This is a pair of affiliated insurance brokerages selling through a telesales model backed by a network of independent 1099 agents. Company 1 focuses on long-term care and retirement-oriented coverage, while Company 2 serves Medicare-eligible consumers seeking supplemental and related products. Together they place policies from multiple carriers and earn both initial and renewal commissions, generating $2.6M in revenue and $668,865 in EBITDA.

The economics tell the story of a book-of-business play. The renewal commission tail on Medicare and long-term care policies means a meaningful portion of revenue recurs each year without re-winning the customer, and the listing emphasizes strong retention and long-standing policyholder relationships. The 1099 agent structure keeps fixed overhead low, which is why Company 1 posts a 37.4% adjusted EBITDA margin, though Company 2 runs much thinner at 6.7%, a spread that deserves scrutiny.

The business licenses across all 50 states and represents numerous leading carriers, giving it geographic and product breadth. Stated growth levers include more than 200 identified policy rewrite opportunities, expanded agent recruiting, better lead generation, and cross-selling LTC and Medicare across the two client bases. With a 2,500 sq ft leased office set to expire end of 2026 and a planned shift to fully remote, this is close to an asset-light, location-independent operation.

Why we like it

Earnings quality is anchored in renewal commissions on Medicare and long-term care policies, which recur annually off an existing policyholder base rather than requiring fresh sales each period. Blended EBITDA of $668,865 on $2.6M in revenue reflects real margin, and the recurring tail gives cash flow visibility that pure lead-gen shops lack.
The moat sits in carrier appointments, 50-state licensing, and a seasoned book of retained policyholders that would take years and significant compliance work to rebuild. Medicare and LTC are heavily regulated niches where established carrier relationships and agent networks act as a genuine barrier to entry.
Demographics are the tailwind here: an aging US population is aging into Medicare eligibility every day, and long-term care demand rises with it. This is structural, non-cyclical demand that grows regardless of the economy, which is exactly why this book qualifies as recession resistant.
The 1099 agent model keeps fixed overhead minimal and the operation is nearly location-independent, with the office lease expiring in 2026 and a planned move to fully remote. An operator can scale production by adding agents and lead flow without proportional cost, and the two minority owners of Company 2 are willing to stay on post-sale.

How to improve it

Execute the 200-plus identified policy rewrite opportunities immediately by transitioning eligible policyholders into newer plans. This is low-hanging organic revenue that lifts commission generation from clients already in the book, and it should be a first-90-day priority with a dedicated retention rep.
Attack the cross-sell gap between the two entities: pitch long-term care to Company 2 Medicare clients and Medicare products to Company 1 LTC clients. You already own the relationship and the trust, so the acquisition cost is effectively zero and it deepens revenue per household.
Diagnose and fix Company 2's 6.7% EBITDA margin versus Company 1's 37.4%. Understand whether the gap is lead cost, commission splits, or overhead, then either restructure the economics or reallocate spend toward the higher-margin LTC engine.
Build a systematic agent recruiting and onboarding engine to expand the 1099 network into underserved states. More licensed producers directly increases policy production, and a repeatable recruiting funnel turns growth from ad hoc into a controllable lever.
Professionalize lead generation by blending digital marketing, referral programs, and vetted third-party lead providers with tracked cost per acquisition and per placed policy. Right now lead flow appears to be a stated opportunity rather than an optimized machine, so instrumenting it unlocks predictable production.
Invest in a CRM and renewal-tracking system to protect the recurring commission tail and flag lapsing policies before they churn. Retention is the entire thesis of a commission book, so a few points of improved persistency compounds directly into enterprise value.
Plan the remote transition ahead of the December 2026 lease expiry to eliminate the office cost line and widen the talent pool for both staff and agents. Locking in a remote operating model before the lease ends removes overhead and future-proofs the cost structure.

Diligence notes

Demand a full breakdown of first-year versus renewal commission revenue, plus policy persistency and lapse rates by product and carrier. The recurring thesis lives or dies on retention, so you need to see whether renewal commissions are stable, growing, or quietly declining.
Scrutinize the two-entity structure and the 6.7% margin at Company 2 versus 37.4% at Company 1. Understand intercompany allocations, shared costs, and whether the blended EBITDA of $668,865 is presented cleanly or benefits from favorable expense assignment between the affiliates.
Examine carrier concentration and the contractual terms of the top appointments. If a disproportionate share of commissions flows from one or two carriers, a contract change, commission cut, or lost appointment could impair the book overnight.
Verify the 1099 agent relationships for worker-classification and contractual continuity risk. Confirm that agents are properly independent, that key producers are not driving most of the revenue, and that agent agreements survive a change of ownership.
Review Medicare and LTC regulatory compliance, CMS marketing rules, and any history of complaints, chargebacks, or clawed-back commissions. This is a compliance-sensitive niche where telesales practices and marketing materials draw regulatory scrutiny.
Clarify the deal structure given the retiring majority owner and two continuing minority owners of Company 2. Confirm exactly what is being sold, whether both entities transfer together, and what post-sale roles, equity, or earnout the minority owners expect.

Source

Originally listed on BizBuySell. View original listing →