Bottom line up front: Buyers in the UK broking market are paying strong multiples right now. They pay them for clean businesses, not busy ones. This is the checklist I would work through before you take a single meeting, so the offer letter reflects what you have actually built.
Most broker owners decide to sell about a year too late and start preparing about two years too late. The gap costs them money. The consolidators have spent the last decade buying up regional brokers, and they have seen every flavour of mess. They are not impressed by a full pipeline or a friendly client book. They are impressed by recurring income they can verify, a business that runs without you, and a data room that answers their questions before they ask them. Get those three right and you change the number.
The financials
This is where most deals are won or lost. Buyers value clean, predictable earnings, so your job is to make those earnings visible and defensible.
- three years of audited or properly prepared accounts, plus management accounts to the most recent month
- a clear EBITDA figure with every add-back listed and justified, owner's salary, personal car, the lot
- gross written premium split by line, by insurer, and by client
- commission rates and any profit share or contingent commission arrangements documented
- a renewal retention rate you can prove, ideally above 90 per cent for a commercial book
- aged debtor analysis and a note on any client paying late or in dispute
The client book
A buyer is buying your clients, not your brand. They will want to know how loyal those clients are and how exposed you are if a few of them leave.
- client concentration analysis, what percentage of income sits with your top 10 accounts
- the split between commercial and personal lines, and the average policy age
- terms of business in place for every client, signed and current
- a note on any client who only stays because of a personal relationship with you
Compliance and the regulator
This is the bit owners underestimate. A single FCA gap can knock months off the timeline or chunks off the price.
- FCA permissions current and matched to what you actually do
- Consumer Duty work documented, with evidence you have acted on it
- complaints log, root cause analysis, and how you closed each one
- training and competence records for every adviser
- PI cover details, claims history, and renewal terms
- AML, data protection, and conduct policies dated and reviewed
The business without you
Here is the contrast that decides your multiple. A brokerage that needs you is a job. A brokerage that runs without you is an asset. Buyers pay for assets.
- an organisation chart showing who does what, with no single point of failure
- documented processes for new business, renewals, claims, and credit control
- a leadership layer that can hold client relationships if you step back
- a realistic handover plan, three months, six months, or a clean break
I got this wrong in my own businesses for years. I was the single point of failure and proud of it. It felt like job security. To a buyer it looks like risk, and risk comes straight off the price.
Systems and data
Your software stack is part of the deal. A buyer wants to migrate your book without losing data or breaking compliance.
- the broking platform you use, version, and contract terms
- a clean, exportable client and policy database
- cyber security measures and any breach history
- a list of every software subscription and what happens to it on a sale
Legal and corporate housekeeping
The boring documents that stall deals at the eleventh hour. Sort them now, not during due diligence.
- up to date statutory registers and Companies House filings
- shareholder agreement and a clear cap table
- property leases, key supplier contracts, and employment contracts
- any litigation, dispute, or guarantee disclosed in writing
Your number and your reason
Two questions a buyer asks in the first meeting. Have honest answers ready.
- what you think the business is worth, and the basis for it
- why you are selling, in one sentence that does not sound like you are running from a problem
Pull all of this into a single data room before you go to market, not during. The brokers who prepare the room first sign at a higher multiple and complete faster, because they look like a business with nothing to hide.
Pick one section above. Spend this week getting it ship-shape. Then move to the next.
If you are weighing up a sale and want a second pair of eyes on how sale-ready your brokerage really is, connect with me on LinkedIn or book a fifteen-minute call.
