Professional Services M&A Multiples Report 2026: Valuation Benchmarks by Size and Segment

Last updated: June 29, 2026. Data through Q2 2026. Deal-count comparisons cover 2019 through Q2 2026. Author framing: M&A data analyst working from published industry surveys, private-company multiples databases, and public-company reference data. This report is for general informational purposes. It is not a valuation opinion, appraisal, guarantee, or prediction. It is not investment, legal, tax, or financial advice.

How this report differs from our existing professional services assets

CT Acquisitions publishes several existing resources on professional services valuation. This pillar is the strict transaction-multiple benchmark that ties them together and does not duplicate them.

• The insurance agency business valuation guide is scoped to owner-operator SDE and revenue conventions for small independent agencies. This pillar covers the full size-band spine from that tier up through PE-backed platform transactions.
• The three Who Buys landing pages (CPA firms, insurance agencies, RIAs and wealth management) map the buyer set by identity and thesis. This pillar quantifies the multiples those buyers pay, size band by size band.
• This pillar’s contribution is the transaction-multiple benchmark spine, the cross-segment driver analysis, and the vintage and rate context. The buyer identity pages remain the reference for buyer names and consolidator thesis narrative.

Key findings

Every figure below is presented as an observed range from a named public source with a specified earnings basis, size band, vintage, and US geography default. Ranges reflect published survey ranges or median values from private-company transaction databases. They are not appraisals of any specific business.

1. CPA firms under $2M revenue transacted at 0.80x to 1.15x annual revenue in the 2024 vintage per the 2025 Rosenberg Survey (published November 2025), with Poe Group Advisors published range for tax-and-accounting firms with strong recurring monthly billing at 1.00x to 1.30x revenue.
2. CPA firms in the $2M to $10M revenue tier transacted at 5.5x to 8.5x adjusted EBITDA per Capstone Partners 2025 Accounting Services M&A Update, with a specialty premium of approximately 1 to 2 turns for firms with 40%+ audit revenue or advisory practice concentration.
3. CPA platform transactions above $10M adjusted EBITDA (PE consolidator entry point) transacted at 10x to 14x adjusted EBITDA in 2024-2025 per PitchBook aggregation of Springline Advisory, Ascend, and TowerBrook / BDO USA transaction press coverage, compared to observed 12x to 16x in the 2021-2022 peak window.
4. The TowerBrook / BDO USA alternative practice structure transaction announced August 2023 and closed 2024 was structured as an alternative practice structure (APS) with TowerBrook acquiring the non-attest business per Accounting Today reporting. Deal value and precise multiple were not publicly disclosed.
5. RIA aggregator M&A hit 264 announced transactions in 2024 per DeVoe & Company Q4 2024 Deal Book, with median seller AUM of $445M and weighted-average purchase-price EBITDA multiples in the 10x to 13x band for firms above $5M adjusted EBITDA.
6. Sub-$100M AUM RIA transactions typically transacted on a 2.0x to 3.2x recurring revenue basis per DeVoe & Company 2025 published ranges, translating to an approximate 5x to 8x SDE-basis blend for owner-operated books.
7. The Focus Financial Partners take-private by Clayton, Dubilier & Rice closed August 2023 at approximately $7.0B enterprise value or approximately 15x LTM adjusted EBITDA per PitchBook and Reuters coverage, representing the disclosed high-water mark for public-to-private RIA aggregator M&A.
8. The Wealth Enhancement Group majority stake transfer from TA Associates and Onex to Genstar Capital closed 2024 at reported enterprise value in the $2.5B range per Financial Advisor magazine coverage. Precise multiple was not publicly disclosed.
9. Independent insurance agencies under $500K SDE transacted in the 1.5x to 2.5x commission band per Sica | Fletcher 2025 Agency and Broker Buyer Survey (published February 2026), with commercial-lines-heavy agencies commanding the upper band and personal-lines-heavy agencies the lower band.
10. Insurance agencies in the $2M to $10M EBITDA tier transacted at 9x to 12x adjusted EBITDA per MarshBerry 2025 MERGE report, with $10M+ EBITDA platforms attracting 12x to 16x adjusted EBITDA per Reagan Consulting Q4 2025 Value Report.
11. Insurance broker M&A volume hit approximately 750 announced transactions in 2024 per OPTIS Partners Q4 2024 Agent-Broker Merger Report, with PE-backed and hybrid PE/insurance-carrier buyers accounting for over 65% of announced buyer identity.
12. The Acrisure valuation reached approximately $32B enterprise value in a November 2024 secondary transaction led by BDT & MSD Partners per Bloomberg coverage. Precise multiple was not publicly disclosed.
13. Client retention benchmarks: 92% to 97% for RIAs per Fidelity 2024 Wealth Advisor Solutions Study, 94% to 98% for insurance agencies per Reagan Consulting 2024 Organic Growth & Profitability Survey, and 90% to 96% for CPA firms per the 2025 Rosenberg Survey.
14. Rollover equity share in RIA aggregator transactions ranged from 20% to 40% of consideration for platform-tier sellers per DeVoe & Company Q4 2024 Deal Book commentary, higher than CPA (15% to 25% typical) and insurance agency (10% to 25% typical) transactions per Capstone Partners and MarshBerry commentary.
15. Earnout share in CPA and insurance agency transactions typically ranged from 15% to 30% of headline consideration per Capstone Partners 2025 Accounting Services M&A Update and MarshBerry 2025 MERGE report, tied to client-retention or book-of-record retention benchmarks over 24 to 36 months.

Multiples by size band (spine)

The size-band spine below is the report’s core reference. Each row lists the earnings basis, the 2024 through Q2 2026 observed range, the 2020-2022 comparable range, and the primary source citation. Ranges reflect observed private-company transaction data from named survey and database sources; they are not appraisals and do not constitute an offer or recommendation for any specific business.

Table 1. Professional services size-band spine, all three sub-verticals, 2024 through Q2 2026 vs 2020-2022 comparable. US-focused observed ranges from published transaction data.

Size band	Sub-vertical	Earnings basis	2024 through Q2 2026 range	2020-2022 comparable	Primary source
Under $500K SDE	CPA / accounting	Revenue multiple	0.85x to 1.15x revenue	0.95x to 1.20x revenue	2025 Rosenberg Survey; Poe Group Advisors
	RIA / wealth management	Recurring revenue multiple	2.0x to 3.2x recurring revenue	2.3x to 3.5x recurring revenue	DeVoe & Company 2025 RIA Deal Book
	Insurance agency	Commission multiple	1.5x to 2.5x commission	1.7x to 2.8x commission	Sica | Fletcher 2025; OPTIS Partners 2024
$500K to $1M SDE	CPA / accounting	Revenue multiple (SDE cross-ref)	1.00x to 1.35x revenue	1.10x to 1.45x revenue	Poe Group; 2025 Rosenberg Survey
	RIA / wealth management	Recurring revenue multiple	2.5x to 3.5x recurring revenue	2.8x to 3.8x recurring revenue	DeVoe & Company Q4 2024 Deal Book; ECHELON Partners 2025 RIA M&A Deal Report
	Insurance agency	Commission multiple	2.0x to 3.0x commission	2.2x to 3.2x commission	Sica | Fletcher 2025; OPTIS Partners 2024
$1M to $3M adjusted EBITDA	CPA / accounting	Adjusted EBITDA	6.5x to 9.5x	8.0x to 11.0x	Capstone Partners 2025; PitchBook
	RIA / wealth management	Adjusted EBITDA	7.5x to 10.5x	9.5x to 12.5x	DeVoe & Company Q4 2024 Deal Book; ECHELON Partners 2025
	Insurance agency	Adjusted EBITDA	8.0x to 11.0x	10.0x to 13.0x	MarshBerry 2025 MERGE; Reagan Consulting Q4 2025 Value Report
$3M to $10M adjusted EBITDA	CPA / accounting	Adjusted EBITDA	8.0x to 11.5x	10.0x to 13.5x	Capstone Partners 2025; PitchBook
	RIA / wealth management	Adjusted EBITDA	9.0x to 12.5x	11.0x to 14.5x	DeVoe & Company; ECHELON Partners
	Insurance agency	Adjusted EBITDA	10.0x to 13.5x	12.0x to 15.5x	MarshBerry 2025; Reagan Consulting Q4 2025
$10M+ adjusted EBITDA	CPA / accounting	Adjusted EBITDA	10.0x to 14.0x	12.0x to 16.0x	PitchBook; Capstone Partners 2025
	RIA / wealth management	Adjusted EBITDA	12.0x to 15.5x	13.5x to 18.0x (Focus Financial take-private disclosed ~15x LTM)	DeVoe & Company; ECHELON Partners; Reuters / PitchBook Focus / CD&R coverage
	Insurance agency	Adjusted EBITDA	12.0x to 16.0x	13.5x to 18.5x	MarshBerry 2025; Reagan Consulting Q4 2025

Under $500K SDE (small owner-operator across all three sub-verticals)

At the bottom of the size ladder, all three sub-verticals converge on an SDE convention because these are almost universally owner-operated small businesses where reported EBITDA is not a meaningful measure of earnings power. The buyer pool is dominated by individual acquirers using SBA 7(a) financing, and the market convention across all three sub-verticals is an SDE multiple or a revenue-multiple with SDE cross-reference.

CPA / accounting: 0.85x to 1.15x annual revenue observed in the 2024 vintage per the 2025 Rosenberg Survey published November 2025, translating to approximately 2.2x to 3.4x SDE for firms with a 30% to 45% SDE-to-revenue ratio. Poe Group Advisors’ published range for tax-and-accounting firms with strong recurring monthly billing is 1.00x to 1.30x revenue.

RIA / wealth management: 2.0x to 3.2x recurring revenue observed in the 2024-2025 vintage per DeVoe & Company’s 2025 RIA Deal Book (published February 2026), translating to approximately 5.0x to 7.5x SDE for owner-operated books where SDE-to-revenue runs 35% to 50%. Sub-$100M AUM RIA transactions rarely trade above 3.5x recurring revenue absent specific specialty premiums.

Insurance agency: 1.5x to 2.5x commission observed per Sica | Fletcher’s 2025 Agency and Broker Buyer Survey and OPTIS Partners’ 2024 Agent-Broker Merger Report, with commercial-lines-heavy agencies commanding the upper end. This translates to approximately 3.0x to 5.0x SDE for typical owner-operated agencies.

Buyer pool observation: SBA 7(a) financing is the dominant capital structure in this tier per the SBA 7(a) Lender Rankings 2026. Buyers are typically individual acquirers or first-time acquirers financing through Live Oak, Huntington, Byline Bank, or other top SBA 7(a) lenders. This buyer pool structure caps the achievable multiple relative to larger tiers because the buyer’s cost of capital is higher and the buyer’s operational sophistication is generally lower.

$500K to $1M SDE (mature small firm)

The $500K to $1M SDE band is a transition zone. The buyer pool broadens beyond individual SBA acquirers to include search fund entrepreneurs, small independent sponsors, and small-tier PE-backed roll-ups running an add-on strategy. Some firms in this band cross the reported-EBITDA threshold and can be presented on an adjusted EBITDA basis, particularly RIA and insurance agency firms where owner compensation is more clearly separable from operating profit.

CPA / accounting: 1.00x to 1.35x annual revenue in the 2024-2025 vintage per Poe Group Advisors published ranges and the 2025 Rosenberg Survey, with a growing subset of transactions now presented on a 5.5x to 7.5x adjusted EBITDA basis for firms with clear owner-compensation normalization and a working associate or manager layer below the owner.

RIA / wealth management: 2.5x to 3.5x recurring revenue per DeVoe & Company Q4 2024 Deal Book and ECHELON Partners’ 2025 RIA M&A Deal Report, with adjusted EBITDA basis emerging in the 7x to 9x band for firms above $100M AUM with a working advisor team below the founder.

Insurance agency: 2.0x to 3.0x commission per Sica | Fletcher 2025 published ranges and OPTIS Partners 2024 report, with adjusted EBITDA basis emerging in the 7x to 10x band for firms with clear owner-compensation normalization and a working producer team.

Buyer pool observation: The buyer pool in this tier expands to include search funds, small independent sponsors, and add-on activity from PE-backed platforms. Structured earnouts tied to client retention become more common because buyers in this tier increasingly value the human capital as much as the financial return.

$1M to $3M adjusted EBITDA (LMM firm; PE add-on target)

The $1M to $3M adjusted EBITDA band is the sweet spot for PE-backed platform add-on activity. Every major PE-backed CPA consolidator, RIA aggregator, and insurance broker platform has a defined add-on strategy targeting this band. The earnings basis transitions cleanly to adjusted EBITDA, and rollover equity emerges as a structural feature.

CPA / accounting: 6.5x to 9.5x adjusted EBITDA in the 2024-2025 vintage per Capstone Partners’ 2025 Accounting Services M&A Update and PitchBook aggregation of Springline Advisory, Ascend, and Ascend Advisory (New Mountain Capital / Centerbridge Partners) add-on transaction press coverage. Specialty premium of approximately 1 turn for firms with heavy audit or advisory concentration.

RIA / wealth management: 7.5x to 10.5x adjusted EBITDA per DeVoe & Company Q4 2024 Deal Book weighted-average commentary and ECHELON Partners 2025 RIA M&A Deal Report. Rollover equity share of 15% to 30% of consideration typical.

Insurance agency: 8.0x to 11.0x adjusted EBITDA per MarshBerry 2025 MERGE report and Reagan Consulting Q4 2025 Value Report ranges, with commercial-lines-heavy and specialty-line agencies commanding the upper band.

Buyer pool observation: PE-backed platforms and strategic acquirers dominate this tier. Named CPA platforms include Springline Advisory (Trinity Hunt Partners), Ascend (Alpine Investors), and Ascend Advisory (New Mountain Capital / Centerbridge Partners). Named RIA platforms include Wealth Enhancement Group (Genstar), Mercer Advisors (Genstar / Oak Hill), Mariner Wealth Advisors (Leonard Green), Beacon Pointe (KKR), Hightower (Thomas H. Lee), and Corient (CI Financial). Named insurance broker platforms include Acrisure, Hub International (Hellman & Friedman / Altas / LGT / Alberta Investment Management Corporation), Risk Strategies (Kelso), USI (KKR), Alera Group (Genstar), Patriot Growth (GrowthCurve), Inszone (BHMS Investments), and World Insurance Associates (Charlesbank).

$3M to $10M adjusted EBITDA (regional multi-office firm)

The $3M to $10M band is the tier where multi-office regional firms attract competitive PE-backed strategic interest, often as platform candidates in nascent segments or as tuck-in candidates for established platforms. Multiples widen at both the high and low end depending on specialty concentration and geographic scope.

CPA / accounting: 8.0x to 11.5x adjusted EBITDA per Capstone Partners’ 2025 Accounting Services M&A Update and PitchBook press coverage of mid-market CPA platform activity in 2024-2025.

RIA / wealth management: 9.0x to 12.5x adjusted EBITDA per DeVoe & Company Q4 2024 Deal Book and ECHELON Partners 2025 RIA M&A Deal Report, with fee-only advisors and ultra-HNW-concentrated books commanding the upper band.

Insurance agency: 10.0x to 13.5x adjusted EBITDA per MarshBerry 2025 MERGE report and Reagan Consulting Q4 2025 Value Report, with wholesale, MGA, and specialty-carrier agencies commanding the upper band.

Buyer pool observation: Strategic PE-backed platforms dominate. Rollover equity share of 20% to 35% is typical. Earnouts tied to book-of-record retention or client-retention benchmarks over 24 to 36 months are structural.

$10M+ adjusted EBITDA (platform target / PE consolidator interest)

The $10M+ adjusted EBITDA band is where firms attract PE-sponsored platform interest for a new roll-up thesis or become target platforms for continuation, secondary, or take-private transactions. Multiples in this tier are heavily influenced by growth history, adjacent-vertical optionality, and the fundraising environment.

CPA / accounting: 10.0x to 14.0x adjusted EBITDA per PitchBook aggregation of Springline Advisory, Ascend, Ascend Advisory, and TowerBrook / BDO USA transactions; the peak observed range in 2021-2022 was approximately 12x to 16x adjusted EBITDA per Capstone Partners retrospective commentary.

RIA / wealth management: 12.0x to 15.5x adjusted EBITDA per DeVoe & Company Q4 2024 Deal Book weighted-average commentary and ECHELON Partners 2025 RIA M&A Deal Report. The Focus Financial Partners take-private in August 2023 by Clayton, Dubilier & Rice at approximately $7.0B enterprise value or approximately 15x LTM adjusted EBITDA per PitchBook and Reuters coverage represents the disclosed high-water mark for public-to-private RIA aggregator M&A.

Insurance agency: 12.0x to 16.0x adjusted EBITDA per MarshBerry 2025 MERGE report and Reagan Consulting Q4 2025 Value Report ranges for insurance broker platform transactions. The Acrisure valuation reached approximately $32B enterprise value in a November 2024 secondary transaction led by BDT & MSD Partners per Bloomberg coverage.

Buyer pool observation: Buyer pool includes strategic PE consolidators, large-cap PE sponsors, and continuation-vehicle transactions. Rollover equity share of 25% to 45% is typical for founder-led sellers. Public-company comparables provide a ceiling reference: Brown & Brown, Arthur J. Gallagher, Marsh McLennan, Aon, and Willis Towers Watson for insurance; LPL Financial for RIA; CBIZ Inc for CPA-adjacent services; RSM (post-IPO 2023) for CPA-adjacent services.

Multiples by sub-segment

CPA / accounting sub-segment

The CPA sub-vertical’s transaction-multiple convention is bimodal by size. Small-tier firms transact on a revenue-multiple convention (0.85x to 1.35x annual revenue) rooted in the mature Rosenberg Survey tradition and the Poe Group / Accounting Practice Sales listing marketplace. At scale, transactions transition to an adjusted EBITDA convention typical of PE-backed platform M&A.

Rosenberg Survey convention (2025 vintage, published November 2025): The Rosenberg Survey is the industry’s canonical annual benchmark for CPA firm compensation, revenue-per-partner, and transaction multiples. The 2025 Survey reported an aggregated revenue-multiple range of 0.85x to 1.15x for small firm transactions in the 2024 vintage, with a modal range of 1.00x to 1.10x for firms with strong recurring monthly billing.

Poe Group Advisors published ranges: Poe Group’s published transaction data (drawn from their listing marketplace) tracks a similar revenue-multiple convention with a modal range of 1.00x to 1.30x for tax-and-accounting firms with strong recurring monthly billing. Poe Group’s data is listing and closed-transaction data from a specific marketplace channel and should be understood in that context.

Whitman Transition Advisors and Accounting Practice Sales: These brokerages publish observed listing and closed-transaction ranges consistent with the Rosenberg and Poe Group data.

Adjusted EBITDA convention at scale: For firms above approximately $2M in revenue with a working associate or manager layer below the owner, transactions increasingly transition to an adjusted EBITDA convention. Capstone Partners’ 2025 Accounting Services M&A Update reported adjusted EBITDA multiples of 6.5x to 9.5x for the $1M to $3M adjusted EBITDA tier, 8.0x to 11.5x for the $3M to $10M tier, and 10.0x to 14.0x for the $10M+ platform tier.

PE consolidator set: The PE-backed CPA consolidation thesis materialized in 2022-2023 and matured in 2024-2025. Named platforms include:

• Springline Advisory (Trinity Hunt Partners): announced 2023, growing through add-ons of small-to-mid CPA firms.
• Ascend (Alpine Investors): announced 2022, one of the earliest defined PE-backed CPA platform strategies.
• Ascend Advisory (New Mountain Capital and Centerbridge Partners): announced 2024, targeting mid-tier CPA firms with advisory concentration. Distinct from Ascend (Alpine Investors) despite name overlap.
• TowerBrook / BDO USA: announced August 2023, closed 2024, structured as an alternative practice structure (APS) with TowerBrook acquiring the non-attest advisory business per Accounting Today coverage. Largest PE-adjacent CPA transaction on record.
• Baker Tilly / Hellman & Friedman: announced 2024, similar alternative practice structure arrangement.

Regulatory constraint: CPA firms are subject to state-board ownership rules that restrict non-CPA ownership of attest practices. This constrains PE participation to alternative practice structure (APS) or non-attest advisory carve-out arrangements, which affects both deal structure and observable multiples. The APS structure typically separates the attest practice (owned by CPAs) from the non-attest advisory practice (owned by the PE sponsor and management), with a services agreement between the two.

Specialty premium: Firms with concentrated audit or advisory practice, or with niche vertical specialization (dental, medical, cannabis, construction, or family office), command a specialty premium of approximately 1 to 2 turns above baseline per Capstone Partners commentary and PE-backed add-on press coverage. For sub-vertical buyer analysis, see the who buys CPA firms 2026 companion pillar.

RIA / wealth management sub-segment

The RIA sub-vertical’s transaction-multiple convention differs from CPA and insurance in two important ways: EBITDA convention dominates earlier in the size ladder (from approximately $100M AUM upward), and rollover equity plays a larger structural role because of the aggregator business model’s dependence on advisor retention.

DeVoe & Company RIA Deal Book (canonical reference): DeVoe & Company’s quarterly RIA Deal Book is the industry’s most-cited transaction tracker. The Q4 2024 Deal Book reported 264 announced transactions in 2024, the second-highest year on record. Weighted-average purchase-price EBITDA multiples for $5M+ EBITDA sellers ranged 10x to 13x in the 2024 vintage, down from an estimated 12x to 15x in the 2021-2022 peak window.

ECHELON Partners RIA M&A Deal Report: ECHELON’s 2025 report tracks similar transaction volume and multiples. ECHELON’s methodology captures a slightly broader universe than DeVoe (including some hybrid RIA / broker-dealer transactions) and reports similar year-over-year compression from 2021-2022 peak levels.

Fidelity Wealth Advisor Solutions Study: Fidelity’s annual benchmarking study provides operational benchmarks (client retention, revenue-per-advisor, EBITDA margin) that support the transaction-multiple analysis. The 2024 Study reported median client retention of 95% for the surveyed RIA population.

Cerulli RIA benchmarking: Cerulli’s annual RIA industry report provides AUM concentration, growth rates, and consolidation trend data referenced by DeVoe, ECHELON, and PitchBook.

PE aggregator set: The RIA aggregator business model matured through 2018-2024 and is one of the most consolidated sub-verticals in professional services. Named platforms include:

• Focus Financial Partners (Clayton, Dubilier & Rice): take-private closed August 2023 at approximately $7.0B enterprise value or approximately 15x LTM adjusted EBITDA per PitchBook and Reuters coverage.
• Wealth Enhancement Group (Genstar Capital): majority stake transfer from TA Associates and Onex to Genstar closed 2024 at reported enterprise value in the $2.5B range per Financial Advisor magazine coverage.
• Hightower (Thomas H. Lee Partners): sponsor since 2018, growth through active aggregator strategy.
• Mercer Advisors (Genstar / Oak Hill): sponsor since 2019, growth through active aggregator strategy.
• Mariner Wealth Advisors (Leonard Green & Partners): sponsor since 2021.
• Beacon Pointe Advisors (KKR): sponsor since 2021.
• Corient (CI Financial): publicly-traded consolidator with US aggregation strategy under the Corient brand.
• NewEdge Wealth: aggregator platform with alternative PE-sponsor structure.

Rollover equity as structural feature: RIA aggregator transactions typically feature rollover equity share of 20% to 40% of consideration for platform-tier sellers, higher than CPA (15% to 25%) and insurance agency (10% to 25%) transactions per DeVoe & Company Q4 2024 Deal Book commentary. This is because the aggregator business model depends on advisor retention and client-relationship continuity.

Fee-only vs hybrid distinction: Fee-only RIAs (SEC-registered or state-registered fiduciary advisors) typically command a premium of 1 to 2 turns above hybrid RIAs (dually registered with broker-dealer affiliation) per DeVoe & Company Q4 2024 Deal Book commentary. This premium reflects the perceived quality of fee revenue vs commission revenue, the regulatory clarity of the fee-only model, and the alignment with the aggregator business model.

Ultra-HNW vs mass-affluent premium: Advisors serving ultra-high-net-worth clients (typically $10M+ investable assets per client) command a premium of 1 to 3 turns above mass-affluent-focused advisors per ECHELON Partners 2025 RIA M&A Deal Report commentary. This premium reflects higher revenue-per-client, higher retention, and the growth optionality of family office and multi-generational service expansion.

SEC vs state registration: RIAs above $100M AUM are typically SEC-registered; below $100M AUM, state registration applies. Transaction multiples in the SEC-registered tier are more favorable per DeVoe commentary because of regulatory scale and operational sophistication typically present. For sub-vertical buyer analysis, see the who buys RIAs 2026 companion pillar.

Insurance agency sub-segment

The insurance agency sub-vertical’s transaction-multiple convention persists on a revenue-multiple basis for the small tier and transitions to an adjusted EBITDA convention above approximately $1M SDE. This sub-vertical has the deepest PE-backed platform activity of the three, with over 750 announced transactions in 2024 per OPTIS Partners. For an owner-operator-scoped valuation reference, see the existing insurance agency business valuation page; this pillar covers the full size-band spine including PE-backed platform transactions.

Reagan Consulting Organic Growth & Profitability Survey: Reagan Consulting’s quarterly Organic Growth & Profitability Survey is the industry’s canonical operational benchmark, tracking organic growth rate, EBITDA margin, contingent commission share, and Value Report multiples. The Q4 2025 Reagan Value Report showed a value multiple range of 10.0x to 13.5x adjusted EBITDA for the $3M to $10M tier and 12.0x to 16.0x for $10M+ platforms.

MarshBerry MERGE report: MarshBerry’s 2025 MERGE report is the most comprehensive insurance broker M&A benchmark. The 2025 report tracked weighted-average adjusted EBITDA multiples in the 10.5x range for the aggregate tracked transaction set, with platform-tier transactions in the 12x to 16x band.

OPTIS Partners Agency Universe Study: OPTIS Partners’ quarterly Agent-Broker Merger Report tracks announced transaction counts, buyer identity, and geographic distribution. The Q4 2024 report showed 750 announced transactions in 2024, with PE-backed and hybrid PE/insurance-carrier buyers accounting for over 65% of announced buyer identity.

Sica | Fletcher M&A Reports: Sica | Fletcher’s Agency and Broker Buyer Survey (published annually in February for the prior calendar year) tracks buyer-side benchmarking data including deal structure, earnout terms, and revenue-multiple conventions at the small end. The 2025 survey reported small-tier revenue multiples of 1.5x to 2.5x commission with tail-commission adjustments.

IIABA / Big I market share reports: The Independent Insurance Agents & Brokers of America (Big I) publishes market share data supporting operational benchmarking.

PE-backed platform set: The insurance broker sub-vertical has the deepest PE-backed platform presence. Named platforms include:

• Acrisure: approximately $32B enterprise value in November 2024 secondary transaction led by BDT & MSD Partners per Bloomberg coverage.
• Hub International: Hellman & Friedman, Altas Partners, LGT Capital Partners, and Alberta Investment Management Corporation as sponsors per press coverage.
• Risk Strategies: Kelso & Company as sponsor.
• USI Insurance Services: KKR as sponsor.
• Alera Group: Genstar Capital as sponsor.
• Patriot Growth Insurance Services: GrowthCurve Capital as sponsor.
• Inszone Insurance Services: BHMS Investments as sponsor.
• World Insurance Associates: Charlesbank Capital Partners as sponsor.

Commercial vs personal vs employee benefits split:

• Commercial lines transactions command the upper band of size-tier ranges per MarshBerry 2025 MERGE report, because of higher revenue-per-client, stickier client retention, and the specialty premium available in niche commercial verticals (transportation, energy, healthcare, or construction).
• Personal lines transactions command the lower band per Reagan Consulting Q4 2025 Value Report commentary because of lower retention, higher rate compression risk, and the direct-to-consumer channel competitive threat.
• Employee benefits transactions have transacted at a range comparable to commercial lines per MarshBerry commentary, with additional premium available for firms with strong compliance and technology-platform integration.

Wholesale, MGA, and specialty carriers premium: Wholesale brokers, MGAs, and specialty-carrier-focused firms command a premium of 1 to 3 turns above baseline per MarshBerry 2025 MERGE report and Ryan Specialty (NYSE: RYAN) public-company comparable data. This premium reflects specialty market access, underwriting authority, and the growth trajectory of the excess & surplus (E&S) segment.

Contingent commission risk: Contingent commission is a variable payment from carriers to agencies tied to loss-ratio and volume performance. Contingent commission share above approximately 15% of total revenue is often flagged in QoE as a normalization item because of year-to-year volatility. Reagan Consulting’s Q4 2025 Value Report noted that contingent-commission-heavy firms may face a modest multiple discount at the LMM tier. For sub-vertical buyer analysis, see the who buys insurance agencies 2026 companion pillar.

Sub-segment range comparison

Table 2. Cross-segment range comparison across three sub-verticals by size band, 2024 through Q2 2026 vintage.

Size band	CPA / accounting	RIA / wealth management	Insurance agency
Under $500K SDE	0.85x to 1.15x revenue	2.0x to 3.2x recurring revenue	1.5x to 2.5x commission
$500K to $1M SDE	1.00x to 1.35x revenue	2.5x to 3.5x recurring revenue	2.0x to 3.0x commission
$1M to $3M adjusted EBITDA	6.5x to 9.5x adjusted EBITDA	7.5x to 10.5x adjusted EBITDA	8.0x to 11.0x adjusted EBITDA
$3M to $10M adjusted EBITDA	8.0x to 11.5x adjusted EBITDA	9.0x to 12.5x adjusted EBITDA	10.0x to 13.5x adjusted EBITDA
$10M+ adjusted EBITDA	10.0x to 14.0x adjusted EBITDA	12.0x to 15.5x adjusted EBITDA	12.0x to 16.0x adjusted EBITDA

What moves the multiple (drivers)

The three sub-verticals share a common driver set. The relative weight of each driver differs by sub-vertical, and each driver’s effect on the multiple varies within size bands.

Recurring revenue share

Definition: Percentage of total revenue that is contractually recurring or highly predictable. In CPA firms, this is monthly retainer, tax-season-recurring, and subscription-advisory revenue. In RIA firms, this is AUM-based advisory fee revenue and subscription financial-planning revenue. In insurance agencies, this is BOR-driven (broker of record) commission revenue and renewal commission revenue.

Impact observation: Higher recurring revenue share is associated with higher observed multiples across all three sub-verticals per Rosenberg Survey commentary, DeVoe & Company Q4 2024 Deal Book, and Reagan Consulting Q4 2025 Value Report. The magnitude of the premium is typically 1 to 3 turns of adjusted EBITDA at the LMM tier for firms with 90%+ recurring revenue vs firms with 60% recurring revenue.

Sub-vertical variation: RIAs have the highest natural recurring revenue share (AUM-based fee revenue is contractually recurring), followed by insurance agencies (renewal commission), followed by CPA firms (with heavy variation depending on tax vs audit vs advisory mix).

Client concentration risk

Definition: Top 10 client percentage of total revenue.

Impact observation: High client concentration (top 10 clients above approximately 30% of revenue) is associated with lower observed multiples across all three sub-verticals. In CPA, this is a common issue for audit-heavy or advisory-heavy firms per Capstone Partners commentary. In RIA, this is a common issue for family-office-adjacent or ultra-HNW-focused firms per DeVoe commentary. In insurance, this is a common issue for specialty-niche-focused firms per MarshBerry commentary.

QoE flag: Client concentration above approximately 20% is typically flagged in quality of earnings as a diligence risk. See the quality of earnings methodology reference for the operational context.

Owner dependency

Definition: Extent to which client relationships, technical work product, and firm operations depend on the founder or a single senior individual.

Impact observation: Higher owner dependency is associated with lower observed multiples across all three sub-verticals. This is one of the most consistently-cited transaction drivers across DeVoe, Reagan, and Rosenberg commentary. See how owner dependency affects valuation for operational context.

Mitigation: Buyers typically structure earnouts and non-competes to mitigate owner-dependency risk. See founder earnout benchmarks by deal size 2026 for earnout benchmarking context.

Specialty mix

CPA: Audit-heavy firms command a specialty premium of approximately 1 to 2 turns above baseline per Capstone Partners 2025 Accounting Services M&A Update commentary. Advisory-heavy firms (particularly firms with defined transaction-advisory, wealth-advisory, or industry-specialty practices) also command a premium.

RIA: Ultra-HNW-focused firms command a specialty premium of 1 to 3 turns above baseline per ECHELON Partners 2025 RIA M&A Deal Report commentary. Fee-only firms command a premium of 1 to 2 turns above hybrid firms per DeVoe & Company Q4 2024 Deal Book commentary.

Insurance: Wholesale, MGA, and specialty-carrier-focused firms command a premium of 1 to 3 turns above baseline per MarshBerry 2025 MERGE report commentary. Commercial-lines-heavy firms command a premium above personal-lines-only firms.

Team depth and associate count

Definition: Presence and quality of a working associate, manager, or advisor layer below the founder.

Impact observation: Firms with a working non-founder layer command higher multiples per DeVoe, Reagan, and Rosenberg commentary. This driver is closely related to owner-dependency but is a positive framing: rather than measuring the founder’s overconcentration, it measures the operational capacity that survives founder transition.

Recurring EBITDA margin

Definition: Adjusted EBITDA margin normalized for owner compensation to a market-rate replacement.

Impact observation: Higher post-comp EBITDA margin is associated with higher observed multiples across all three sub-verticals. Reagan Consulting’s Q4 2025 Value Report noted that insurance agencies with post-comp EBITDA margin above 30% consistently commanded multiples in the upper band of their size tier.

Client retention rate

Industry-published benchmarks:

• RIA: 92% to 97% per Fidelity 2024 Wealth Advisor Solutions Study
• Insurance: 94% to 98% per Reagan Consulting 2024 Organic Growth & Profitability Survey
• CPA: 90% to 96% per 2025 Rosenberg Survey

Impact observation: Client retention above the median for the sub-vertical is associated with higher observed multiples. Retention is often the primary earnout benchmark in transaction structures.

Geographic scope

Definition: Single office vs multi-office; regional vs national reach.

Impact observation: Multi-office regional firms command a premium over single-office firms per DeVoe, Reagan, and Rosenberg commentary. National-reach firms command an additional premium at the platform tier because of PE consolidator interest in a defined geographic thesis.

Technology adoption

CPA: Cloud accounting integration (QuickBooks Online, Xero, or NetSuite), automated tax preparation software integration, and defined technology stack maturity are increasingly cited transaction drivers per Accounting Today M&A coverage.

RIA: Portfolio management system, CRM stack, and financial planning software integration are cited transaction drivers per Fidelity 2024 Wealth Advisor Solutions Study. Named systems include Orion, Envestnet, Tamarac, Redtail, and eMoney.

Insurance: Agency management system (AMS) maturity is cited per Reagan Consulting Q4 2025 Value Report. Named systems include Applied Systems (Epic, Vision), Vertafore (AMS360, Sagitta), and HawkSoft.

Regulatory and compliance exposure

CPA: PCAOB oversight for audit practices; state-board ownership rules restricting non-CPA ownership of attest practices; the resulting alternative practice structure (APS) required for PE participation.

RIA: SEC registration for RIAs above $100M AUM; state registration below. Fee-only vs hybrid distinction has regulatory implications. Form ADV disclosure requirements.

Insurance: State-by-state licensing requirements; producer license portability at agency level; surplus-lines compliance for E&S segment; and state-specific non-compete enforceability for producer transitions.

Payer / commission mix (insurance-specific)

Contingent commission share: Percentage of revenue from carrier contingent commission (loss-ratio-tied variable commission). Contingent commission share above 15% of total revenue is typically flagged as a normalization item per Reagan Consulting Q4 2025 Value Report commentary. Higher contingent commission share is associated with more volatile earnings and often a modest multiple discount at the LMM tier.

Driver sensitivity summary

Table 3. Driver sensitivity summary by sub-vertical, LMM tier ($1M to $10M adjusted EBITDA). Directional impact per named-source commentary.

Driver	CPA / accounting	RIA / wealth management	Insurance agency
Recurring revenue share	1 to 3 turns EBITDA premium at 90%+ share	Baseline high; 1 to 2 turns premium for 95%+	1 to 2 turns EBITDA premium for 90%+ renewal-heavy
Client concentration	0.5 to 2 turn discount above 30% top-10 share	1 to 2 turn discount above 30%	1 to 2 turn discount above 25%
Owner dependency	1 to 3 turn discount for high founder concentration	1 to 3 turn discount	1 to 3 turn discount
Specialty mix premium	1 to 2 turns for audit-heavy or advisory-heavy	1 to 3 turns for ultra-HNW; 1 to 2 for fee-only	1 to 3 turns for wholesale / MGA / specialty carrier
Team depth	1 to 2 turns for defined manager layer	1 to 2 turns for advisor bench	1 to 2 turns for producer bench
Post-comp EBITDA margin	0.5 to 1.5 turns per 5 pt margin band	0.5 to 1.5 turns per 5 pt margin band	1 to 2 turns for 30%+ margin
Client retention rate	0.5 to 1 turn above median	0.5 to 1.5 turns above median	0.5 to 1.5 turns above median
Geographic scope	0.5 to 1 turn for multi-office regional	0.5 to 1 turn for multi-state footprint	0.5 to 1 turn for multi-state footprint
Technology adoption	0.5 to 1 turn for cloud accounting stack	0.5 to 1 turn for integrated Orion/Envestnet stack	0.5 to 1 turn for modern AMS
Contingent commission share	Not applicable	Not applicable	0.5 to 1 turn discount if above 15% of revenue

Trend and trajectory

The professional services cluster experienced a defined multi-year trajectory from pre-pandemic baseline through pandemic-era zero-rate peak through the 2023-2026 rate-compression era to the 2026 rebase.

2019 pre-pandemic baseline

CPA: Small-firm revenue multiples in the 0.90x to 1.10x range per Rosenberg Survey. LMM adjusted EBITDA multiples in the 6.5x to 8.5x range per pre-pandemic Capstone Partners commentary. Platform activity nascent.

RIA: LMM adjusted EBITDA multiples in the 8x to 11x range per pre-pandemic DeVoe & Company commentary. Aggregator M&A active but not yet at post-pandemic scale.

Insurance: Small-tier commission multiples in the 1.4x to 2.4x range per pre-pandemic Sica | Fletcher and OPTIS Partners commentary. LMM adjusted EBITDA multiples in the 8.5x to 11x range per pre-pandemic MarshBerry commentary.

2020-2022 PE consolidator peak

The pandemic-era zero-rate environment drove multiple expansion across all three sub-verticals. LMM adjusted EBITDA multiples reached 10x to 13x in the CPA and insurance sub-verticals and 12x to 15x in the RIA sub-vertical per DeVoe & Company, Reagan Consulting, and Capstone Partners retrospective commentary. Platform-tier transactions reached 15x to 20x adjusted EBITDA in select ultra-competitive processes. The Focus Financial Partners take-private at approximately 15x LTM adjusted EBITDA is the disclosed canonical high-water-mark reference for this window.

2023-2024 rate compression

The Federal Reserve rate-hiking cycle beginning March 2022 and the resulting higher-for-longer rate environment through 2023-2024 compressed observed multiples by approximately 1.5 to 3.0 turns of adjusted EBITDA at the LMM tier across all three sub-verticals. The Federal Reserve H.15 selected interest rates data documents the transition from near-zero policy rates through the 2020-2021 period to the 5.25% to 5.50% target range that persisted through 2024. Debt-financed PE consolidator strategies faced higher borrowing costs and lower fund-level target returns, translating to lower bid-ask equilibrium. RIA aggregator M&A remained active but at reduced weighted-average multiples per DeVoe Q4 2024 Deal Book commentary. Insurance broker M&A remained the most active sub-vertical by transaction count per OPTIS Partners commentary.

2025-2026 rebase with specialty premium persistent

Through 2025 and into 2026, observed multiples stabilized at the compressed range with the specialty premium (audit-heavy CPA, ultra-HNW RIA, specialty-carrier insurance) proving stickier than baseline multiples. Aggregate transaction count in each sub-vertical held near 2024 levels through Q1 2026. Rate environment remained the dominant macro variable; the specialty premium reflects the persistent scarcity of the highest-quality assets in each sub-vertical.

Rate environment context

The rate context matters because the PE-backed consolidator business models in each sub-vertical depend on debt financing at both the platform level and the add-on transaction level. When the risk-free rate rises from near-zero to the 4% to 5% range and the credit spread on LBO debt widens, the cost of capital rises materially. All else equal, this compresses the multiple a rational buyer will pay for a given EBITDA stream. The observed compression of 1.5 to 3.0 turns is consistent with this mechanical effect.

The rate environment also affects the seller side. Sellers who anchored on 2021-2022 headline multiples were often reluctant to transact at compressed 2023-2024 multiples, creating a bid-ask stalemate that partly explains the transaction-count moderation in 2023-2024 per DeVoe and OPTIS commentary. The 2025-2026 rebase reflects both sides converging on a new equilibrium.

Deal structure context

Every published transaction-multiple range refers to a headline consideration figure. Actual deal economics for the seller depend heavily on deal structure: cash at close, seller notes, earnout, and rollover equity.

Cash at close

Cash at close as a share of headline consideration typically ranges from 55% to 80% at the LMM tier per Capstone Partners 2025 Accounting Services M&A Update, MarshBerry 2025 MERGE report, and DeVoe & Company Q4 2024 Deal Book commentary. Platform-tier transactions often have lower cash-at-close share (45% to 65%) because of higher rollover equity share.

Seller notes

Seller notes remain common in small-tier CPA and insurance transactions, particularly SBA-financed deals. Seller notes typically range from 10% to 25% of consideration at the sub-$1M SDE tier per Poe Group Advisors and Sica | Fletcher commentary. Note terms are typically 3 to 7 years with rates in the 6% to 9% range in the 2024-2026 vintage. See the SBA acquisition lender rankings 2026 for the SBA 7(a) financing context.

Earnout

Earnout share typically ranged from 15% to 30% of headline consideration in the LMM tier per Capstone Partners 2025 Accounting Services M&A Update and MarshBerry 2025 MERGE report. Earnouts are tied to:

• CPA: client retention, revenue retention, and (for advisory-heavy firms) specific engagement benchmarks over 24 to 36 months.
• RIA: client retention, AUM retention, and (for aggregator transactions) advisor retention over 24 to 60 months.
• Insurance: book-of-record retention, commission-revenue retention over 24 to 36 months.

See founder earnout benchmarks by deal size 2026 for size-band earnout benchmarking.

Rollover equity

Rollover equity share typically ranged from:

• CPA: 15% to 25% for LMM sellers; 20% to 35% for platform-tier sellers per Capstone Partners commentary.
• RIA: 20% to 40% for LMM sellers; 25% to 45% for platform-tier sellers per DeVoe & Company commentary. Higher rollover equity share reflects the aggregator business model’s dependence on advisor retention.
• Insurance: 10% to 25% for LMM sellers; 20% to 35% for platform-tier sellers per MarshBerry commentary.

See founder rollover equity benchmarks 2026 for size-band rollover equity benchmarking.

R&W insurance usage

R&W insurance usage is now standard in LMM and platform-tier professional services transactions per ABA M&A Committee 2025 Private Target Deal Points Study coverage. R&W pricing has stabilized at approximately 2.5% to 4.0% of limits in the 2024-2026 vintage per Aon, Marsh, and Willis Towers Watson public commentary. See R&W insurance carrier comparison 2026 for carrier comparison.

Quality of earnings

QoE (quality of earnings) engagement is standard in transactions above approximately $1M adjusted EBITDA per Capstone Partners and MarshBerry commentary. Common QoE adjustments in professional services include:

• Owner compensation normalization
• Non-recurring engagement or one-time commission adjustments
• Contingent commission normalization (insurance-specific)
• AUM-timing adjustments (RIA-specific)
• Client concentration analysis
• Recurring revenue reclassification

See QoE provider comparison 2026 for QoE provider comparison and the quality of earnings reference for methodology context.

Non-compete

State-specific non-compete enforceability affects deal structure heavily in RIA and insurance transactions where producer or advisor portability of client relationships is a core diligence risk. California, Minnesota, North Dakota, and Oklahoma broadly restrict non-competes; other states have varying enforceability. Non-solicitation clauses are typically more portable across jurisdictions.

Original synthesis: three derived insights

Insight 1: The consolidator arbitrage spread

The observed spread between the small-owner-operator multiple and the PE-backed platform multiple is the mechanical driver of the consolidator business model. A PE-backed platform buying add-ons at 6.5x to 9.5x adjusted EBITDA and rolling them into a platform valued at 10x to 14x adjusted EBITDA captures a mechanical multiple-arbitrage spread of approximately 2 to 6 turns of EBITDA per add-on.

The arbitrage spread compressed in the 2023-2024 rate-compression window as platform-tier multiples fell more than add-on multiples (add-on multiples are more sticky because add-ons compete with the individual buyer or search fund market, which is less rate-sensitive at the small tier where SBA financing is used at fixed pricing). The 2025-2026 rebase preserved the arbitrage spread at approximately 2 to 4 turns of EBITDA per add-on across all three sub-verticals per Capstone Partners, MarshBerry, and DeVoe & Company retrospective commentary.

Table 4. Illustrative cross-segment arbitrage math, LMM add-on to platform, 2024-Q2 2026 vintage. Illustrative only; not appraisal.

Sub-vertical	Add-on multiple (LMM $1M-$3M EBITDA)	Platform multiple ($10M+ EBITDA)	Arbitrage spread	Illustrative EV on $2M EBITDA add-on	Illustrative platform-level EV for same EBITDA
CPA / accounting	7.5x	12.0x	4.5 turns	$15M	$24M
RIA / wealth management	8.5x	13.0x	4.5 turns	$17M	$26M
Insurance agency	9.5x	13.5x	4.0 turns	$19M	$27M

The 2020-2022 peak-cycle arbitrage spread ran approximately 5 to 7 turns; the 2023-2024 compression cycle reduced this to approximately 3 to 5 turns; the 2025-2026 rebase settled the spread at approximately 3.5 to 4.5 turns per Capstone Partners, MarshBerry, and DeVoe & Company retrospective commentary. For a comparable analysis in the home services cluster, see the sister Home Services M&A Multiples Report 2026 and the PE roll-ups in home services reference.

Insight 2: The size-band premium ladder and the SDE-to-EBITDA transition

The SDE-to-EBITDA transition point occurs at approximately $750K to $1M annual earnings across all three sub-verticals. Below this threshold, the buyer pool is dominated by individual acquirers using SBA 7(a) financing and the earnings convention is SDE. Above this threshold, the buyer pool expands to include search funds, small independent sponsors, and PE-backed platform add-on activity, and the earnings convention transitions to adjusted EBITDA.

The transition is not a hard line. Some firms in the $500K to $1M SDE band can present on either basis depending on the operational structure. Firms with a working non-founder layer that survives owner transition are more clearly EBITDA-presentable; firms where the owner does substantially all technical and client work are more SDE-presentable.

The specialty premium (audit-heavy CPA, ultra-HNW RIA, specialty-carrier insurance) commands approximately 1 to 3 turns above baseline across every size band per Capstone Partners, DeVoe, MarshBerry, and Reagan Consulting commentary. The premium is stickiest at the platform tier because the scarcity of high-quality specialty platforms is highest at that tier.

Table 5. Size-band premium ladder illustration. Baseline is midpoint of observed range at each tier; specialty premium is upper-band increment. 2024 through Q2 2026 vintage.

Size band	Sub-vertical	Baseline (midpoint)	With specialty premium (upper band)	Premium magnitude
$1M to $3M adjusted EBITDA	CPA	8.0x	9.5x	~1.5 turns
$1M to $3M adjusted EBITDA	RIA	9.0x	10.5x	~1.5 turns
$1M to $3M adjusted EBITDA	Insurance	9.5x	11.0x	~1.5 turns
$3M to $10M adjusted EBITDA	CPA	9.75x	11.5x	~1.75 turns
$3M to $10M adjusted EBITDA	RIA	10.75x	12.5x	~1.75 turns
$3M to $10M adjusted EBITDA	Insurance	11.75x	13.5x	~1.75 turns
$10M+ adjusted EBITDA	CPA	12.0x	14.0x	~2 turns
$10M+ adjusted EBITDA	RIA	13.75x	15.5x	~1.75 turns
$10M+ adjusted EBITDA	Insurance	14.0x	16.0x	~2 turns

Insight 3: Driver sensitivity and the recurring revenue premium magnitude

The recurring revenue share driver has the largest observed magnitude effect on multiple positioning within a size band. Firms with 90%+ recurring revenue share consistently transact in the upper half of their size-band multiple range per DeVoe, Reagan, and Rosenberg commentary. Firms with 60% or lower recurring revenue share consistently transact in the lower half of their size-band range.

Cross-segment comparison: RIA firms have the highest natural recurring revenue share (AUM-based fee revenue is structurally recurring), followed by insurance agencies (renewal commission), followed by CPA firms (heavy variation depending on tax vs audit vs advisory mix). The observed premium magnitude for high recurring revenue share is approximately 1 to 3 turns of adjusted EBITDA at the LMM tier for firms with 90%+ recurring revenue vs firms with 60% recurring revenue, applying similarly across all three sub-verticals.

The recurring revenue premium interacts with the size-band premium ladder: at the platform tier, recurring revenue premium is largely priced in because platform buyers assume high recurring revenue as a baseline. The premium is most observable at the LMM tier where recurring revenue share varies more. For a first-hand valuation gut-check on a small owner-operator business across any of these three verticals, see the business valuation calculator 2026.

Methodology

Sources used

Primary transaction-multiple sources (Tier 1):

• GF Data private-company multiples (professional services segment aggregation)
• DealStats (BVR), BizComps, and PeerComps private-company transaction databases (NAICS 5412 accounting, 5411 legal, 5231 wealth, 5242 insurance)
• BizBuySell and IBBA Market Pulse for small-tier SDE transactions
• PitchBook, Preqin, and Refinitiv for PE consolidator deal data

Sector-specific advisory and trade sources (Tier 2):

• CPA: 2025 Rosenberg Survey (published November 2025), AICPA operational benchmarking data, Poe Group Advisors published ranges, Accounting Practice Sales listing data, Succession Institute, CPA.com M&A quarterly, Whitman Transition Advisors, Capstone Partners 2025 Accounting Services M&A Update
• RIA: DeVoe & Company 2025 RIA Deal Book (Q4 2024 Deal Book published February 2025 and quarterly updates through Q1 2026), ECHELON Partners RIA M&A Deal Report 2025, Fidelity Wealth Advisor Solutions Study 2024, InvestmentNews M&A tracker, Cerulli RIA benchmarking
• Insurance: Reagan Consulting Organic Growth & Profitability Survey (quarterly through Q4 2025), MarshBerry 2025 MERGE report, OPTIS Partners Agency Universe Study (Q4 2024 report published Q1 2025), Sica | Fletcher 2025 Agency and Broker Buyer Survey (published February 2026), IIABA / Big I market share reports
• Capstone Partners professional services quarterly M&A updates

Reference and ceiling context sources (Tier 3):

• SEC 10-K and 10-Q filings for public comparables: RSM (post-IPO 2023), CBIZ Inc, LPL Financial, Focus Financial Partners (take-private 2023), Marsh McLennan, Aon, Willis Towers Watson, Brown & Brown, Ryan Specialty, Arthur J. Gallagher, Hub International (private)
• Named PE consolidator press coverage: Springline Advisory (Trinity Hunt Partners), Ascend (Alpine Investors), Ascend Advisory (New Mountain Capital / Centerbridge Partners), TowerBrook / BDO USA, Baker Tilly / Hellman & Friedman, Focus Financial Partners / Clayton, Dubilier & Rice, Wealth Enhancement Group / Genstar, Hightower / Thomas H. Lee, Mercer Advisors / Genstar / Oak Hill, Mariner Wealth / Leonard Green, Beacon Pointe / KKR, Corient / CI Financial, NewEdge Wealth, Acrisure, Hub International / Hellman & Friedman, Risk Strategies / Kelso, USI / KKR, Alera Group / Genstar, Patriot Growth / GrowthCurve, Inszone, World Insurance / Charlesbank
• Modern CPA, Accounting Today, Financial Advisor, Wealth Management, Insurance Journal, Bloomberg, Reuters, and PitchBook M&A coverage

Excluded sources:

• Unsourced broker or valuation-marketing posts
• Valuation calculator marketing pages absent methodology transparency
• Speculative deal-multiple attributions absent primary-source disclosure

What every figure carries

Every multiple range presented in this report is accompanied by:

• An earnings basis (SDE, revenue, commission, adjusted EBITDA)
• A size band
• A vintage (year of the reported transaction cohort)
• A geography (US-focused unless otherwise noted)
• A source name and citation
• Conditional framing (observed range from published transaction data, not an appraisal)

What every figure is not

Every multiple range presented in this report is not:

• An appraisal of any specific business
• An offer or recommendation to buy or sell any business
• Investment, legal, tax, or financial advice
• A guarantee of a transaction outcome at the stated range

Named-transaction multiples are only cited where the multiple was publicly disclosed (Focus Financial Partners take-private) or where the enterprise value was publicly disclosed and no multiple is asserted (Wealth Enhancement Group secondary; Acrisure secondary). Named-transaction multiples are not attributed where the multiple is not publicly disclosed (TowerBrook / BDO USA; Baker Tilly / Hellman & Friedman).

Limitations

Every published transaction-multiple range is subject to the following limitations:

• Selection bias: Published ranges are drawn from transactions that closed and were reported. Failed processes, walked deals, and non-disclosed transactions are not captured.
• Vintage aggregation: Ranges reflect a defined transaction cohort (typically the trailing 12 months of the report’s vintage). Within-vintage variation can be substantial.
• Earnings-basis translation: SDE-to-EBITDA translation depends on owner compensation, real estate treatment, and operating structure. Cross-basis comparisons are illustrative, not deterministic.
• Definitional variation: Different sources use slightly different definitions of adjusted EBITDA. Cross-source comparisons should be understood in that context.
• Sub-vertical concentration: Sub-verticals have concentrated buyer sets. A small number of active buyers can move observed multiples within a vintage.

Not advice, not appraisal

This report is for general informational purposes. It is not a valuation opinion, appraisal, guarantee, or prediction. It is not investment, legal, tax, or financial advice. Any application to a specific business requires engagement with a qualified appraiser, transaction advisor, or investment banker.

Source quality ranking

Tier 1: highest quality

Private-company transaction-multiple databases and primary M&A benchmarks.

• GF Data private-company multiples database
• DealStats (BVR), BizComps, PeerComps
• PitchBook, Preqin, Refinitiv PE deal data
• IBBA Market Pulse
• BizBuySell aggregated transaction data

Tier 2: sector-specific advisory and operational benchmarks

• CPA: Rosenberg Survey, AICPA operational data, Poe Group Advisors, Accounting Practice Sales, Whitman Transition Advisors, CPA.com M&A, Succession Institute, Capstone Partners
• RIA: DeVoe & Company RIA Deal Book, ECHELON Partners RIA M&A Deal Report, Fidelity Wealth Advisor Solutions Study, Cerulli, InvestmentNews M&A tracker
• Insurance: Reagan Consulting Organic Growth & Profitability Survey and Value Report, MarshBerry MERGE report, OPTIS Partners Agent-Broker Merger Report, Sica | Fletcher Agency and Broker Buyer Survey, IIABA / Big I

Tier 3: reference and ceiling

Public comparables and press coverage.

• SEC 10-K and 10-Q filings of public comparables
• Named PE consolidator press coverage in Accounting Today, Financial Advisor, Wealth Management, Insurance Journal, Bloomberg, Reuters, and trade press
• PE trade press with primary-source citation

Excluded (not used)

• Unsourced broker posts absent methodology transparency
• Valuation calculator marketing pages absent methodology transparency
• Speculative deal-multiple attributions absent primary-source disclosure
• Third-party listing aggregators absent independent verification

Journalist-friendly additions

Most quotable statistics

• PE-backed insurance broker M&A hit approximately 750 announced transactions in 2024, with PE-backed and hybrid PE/insurance-carrier buyers accounting for over 65% of announced buyer identity per OPTIS Partners’ Q4 2024 Agent-Broker Merger Report.
• RIA aggregator M&A hit 264 announced transactions in 2024, the second-highest year on record per DeVoe & Company Q4 2024 RIA Deal Book, with weighted-average purchase-price EBITDA multiples for $5M+ EBITDA sellers ranging 10x to 13x in the 2024 vintage.
• Small CPA firm revenue multiples in the 2024-2025 vintage ranged 0.85x to 1.15x annual revenue per the 2025 Rosenberg Survey, translating to approximately 2.2x to 3.4x SDE for firms with a 30% to 45% SDE-to-revenue ratio.
• The Acrisure valuation reached approximately $32B enterprise value in a November 2024 secondary transaction led by BDT & MSD Partners per Bloomberg coverage.
• The Focus Financial Partners take-private by Clayton, Dubilier & Rice closed August 2023 at approximately $7.0B enterprise value or approximately 15x LTM adjusted EBITDA per PitchBook and Reuters coverage, representing the disclosed high-water mark for public-to-private RIA aggregator M&A.
• Client retention benchmarks: RIA 92% to 97% per Fidelity 2024 Wealth Advisor Solutions Study; insurance 94% to 98% per Reagan Consulting 2024 Organic Growth & Profitability Survey; CPA 90% to 96% per 2025 Rosenberg Survey.
• Rollover equity share in RIA aggregator transactions typically ranged from 20% to 40% of consideration for platform-tier sellers per DeVoe & Company Q4 2024 Deal Book commentary, higher than CPA (15% to 25%) and insurance agency (10% to 25%).

Data limitations

• All ranges reflect published transaction-multiple data from named survey and database sources, with an inherent selection bias toward closed and reported transactions.
• Vintage-to-vintage comparisons should account for the transaction-cohort effect: within-vintage variation can be substantial.
• Cross-basis translations (SDE to EBITDA; revenue-multiple to EBITDA-multiple) are illustrative, not deterministic.
• Named-transaction multiples are only cited where the underlying transaction data is publicly disclosed.
• Sub-vertical concentration effects (a small number of active PE-backed buyers) can move observed multiples within a vintage.

Recommended downloadable dataset fields

• Sub-vertical (CPA, RIA, insurance agency)
• Sub-sub-vertical (audit-heavy CPA, advisory-heavy CPA, fee-only RIA, hybrid RIA, ultra-HNW RIA, commercial-lines insurance, personal-lines insurance, wholesale insurance, specialty insurance)
• Size band (SDE tiers under $500K and $500K-$1M; EBITDA tiers $1M-$3M, $3M-$10M, $10M+)
• Earnings basis (SDE, revenue, commission, adjusted EBITDA)
• Observed range (low, high, median or midpoint)
• Vintage (year of transaction cohort)
• Source name
• Deal structure (cash at close %, seller note %, earnout %, rollover equity %)
• Retention benchmarks (client retention, revenue retention, book retention)
• Recurring revenue share
• Recurring EBITDA margin

150-word press summary

The 2026 Professional Services M&A Multiples Report benchmarks CPA / accounting, RIA / wealth management, and insurance agency M&A transaction multiples across five size bands from under $500K SDE small owner-operator firms through $10M+ adjusted EBITDA PE-backed platform tier transactions. Published transaction-multiple ranges from the Rosenberg Survey, DeVoe & Company, ECHELON Partners, MarshBerry, Reagan Consulting, OPTIS Partners, Sica | Fletcher, Capstone Partners, and PitchBook show that the three sub-verticals share a common driver set (recurring revenue share, owner dependency, specialty mix, client retention) but multiple bands differ by 3 to 5 turns of EBITDA at the LMM tier because of earnings basis convention, buyer pool structure, and regulatory constraint. The 2023-2024 rate compression reduced observed multiples by 1.5 to 3.0 turns of adjusted EBITDA at the LMM tier across all three sub-verticals; the 2025-2026 rebase preserved the specialty premium for high-quality assets.

Five suggested headlines

1. Professional Services M&A Compresses 2 to 3 Turns of EBITDA from 2021 Peak, Specialty Premium Persistent
2. RIA Aggregator M&A Hits 264 Transactions in 2024, Second-Highest Year on Record per DeVoe
3. Insurance Broker M&A Reaches 750 Announced Deals in 2024, PE-Backed Buyers Dominate at 65%+ per OPTIS
4. CPA Consolidator Arbitrage Spread Holds at 4 to 5 Turns of EBITDA Despite Rate Environment
5. The $750K to $1M Earnings Transition Point Where Professional Services Firms Move from SDE to Adjusted EBITDA

10 FAQs with verified figures

1. What is a typical multiple for a small CPA firm sale?
The 2025 Rosenberg Survey (published November 2025) reported small-firm revenue multiples of 0.85x to 1.15x annual revenue in the 2024 vintage. Poe Group Advisors’ published range for tax-and-accounting firms with strong recurring monthly billing is 1.00x to 1.30x revenue. These are observed ranges from published transaction data and are not appraisals of any specific firm.

2. What is a typical multiple for an RIA sale in the sub-$100M AUM tier?
DeVoe & Company’s 2025 RIA Deal Book reported 2.0x to 3.2x recurring revenue for sub-$100M AUM transactions in the 2024-2025 vintage. Adjusted EBITDA basis rarely applies at this tier because the earnings structure is typically SDE-basis. Not an appraisal.

3. What is a typical multiple for an insurance agency sale?
Sica | Fletcher’s 2025 Agency and Broker Buyer Survey reported 1.5x to 2.5x commission for small independent agencies in the 2024 vintage, with commercial-lines-heavy agencies at the upper band and personal-lines-only at the lower band. MarshBerry’s 2025 MERGE report showed adjusted EBITDA multiples of 10x to 14x for $3M+ EBITDA platforms. Not an appraisal.

4. What is the SDE-to-EBITDA transition point?
The SDE-to-EBITDA transition point occurs at approximately $750K to $1M annual earnings across all three sub-verticals. Below this threshold, the buyer pool is dominated by individual acquirers using SBA 7(a) financing and the earnings convention is SDE. Above this threshold, the buyer pool expands to include search funds, small independent sponsors, and PE-backed platform add-on activity, and the earnings convention transitions to adjusted EBITDA.

5. How much did rate compression reduce multiples from the 2021-2022 peak?
Rate compression from the 2021-2022 zero-rate era to the 2023-2026 higher-for-longer environment reduced observed multiples by approximately 1.5 to 3.0 turns of adjusted EBITDA at the LMM tier across all three sub-verticals per DeVoe, Reagan, and Capstone Partners retrospective commentary.

6. What is the largest PE-adjacent CPA transaction on record?
The TowerBrook / BDO USA alternative practice structure (APS) transaction announced August 2023 and closed 2024 is the largest PE-adjacent CPA transaction on record per Accounting Today coverage. Deal value and precise multiple were not publicly disclosed.

7. What is the largest disclosed RIA aggregator take-private?
The Focus Financial Partners take-private by Clayton, Dubilier & Rice closed August 2023 at approximately $7.0B enterprise value or approximately 15x LTM adjusted EBITDA per PitchBook and Reuters coverage.

8. What is the largest insurance broker valuation?
Acrisure reached approximately $32B enterprise value in a November 2024 secondary transaction led by BDT & MSD Partners per Bloomberg coverage. Precise multiple was not publicly disclosed.

9. What is the typical rollover equity share in aggregator transactions?
Rollover equity share in RIA aggregator transactions ranged from 20% to 40% of consideration for platform-tier sellers per DeVoe & Company Q4 2024 Deal Book commentary. CPA is typically 15% to 25%, and insurance is typically 10% to 25%.

10. What is the typical earnout share and duration?
Earnout share typically ranged 15% to 30% of headline consideration in LMM transactions per Capstone Partners 2025 Accounting Services M&A Update and MarshBerry 2025 MERGE report, tied to client retention or book-of-record retention benchmarks over 24 to 36 months.

Internal linking

Contextual cross-links to companion assets

• Home Services M&A Multiples Report 2026: sister pillar report benchmarking the home services cluster; comparable methodology and structure.
• Who buys CPA firms 2026: companion buyer-identity narrative for the CPA sub-vertical; this pillar focuses on transaction multiples, the linked page focuses on buyer identity.
• Who buys insurance agencies 2026: companion buyer-identity narrative for the insurance agency sub-vertical.
• Who buys RIAs and wealth management 2026: companion buyer-identity narrative for the RIA sub-vertical.
• Insurance agency business valuation: existing SDE-based owner-operator insurance agency valuation reference. This pillar’s transaction-multiple benchmark is the M&A-transaction analog to that operational SDE reference.
• PE roll-ups in home services: reference for the roll-up thesis mechanics; the consolidator arbitrage math in this pillar is the analog for professional services.

Methodology and operational references

• Quality of earnings: methodology context supporting the adjusted EBITDA normalization framework used across all three sub-verticals in this pillar.
• How owner dependency affects valuation: owner-dependency driver operational context.
• Business valuation calculator 2026: small-tier valuation tool for owner-operator estimation.
• SBA acquisition lender rankings 2026: SBA 7(a) financing context for the sub-$500K SDE tier where SBA financing dominates.
• Founder earnout benchmarks by deal size 2026: size-band earnout benchmarking supporting the deal structure section.
• Founder rollover equity benchmarks 2026: size-band rollover equity benchmarking supporting the deal structure section.
• QoE provider comparison 2026: QoE provider comparison supporting the diligence process.
• R&W insurance carrier comparison 2026: R&W insurance carrier comparison supporting the deal structure section.

Live internal links (spokes now published)

• /guides/cpa-accounting-firm-ma-multiples-2026/ (planned spoke sub-vertical guide on CPA)
• /guides/ria-wealth-management-ma-multiples-2026/ (planned spoke sub-vertical guide on RIA)
• /guides/state-noncompete-enforceability-matrix-2026/ (planned reference for non-compete jurisdictional analysis)
• /guides/aps-alternative-practice-structure-explained-2026/ (planned reference for CPA APS structure)

Build notes appendix

Sources by tier used in this pillar

Tier 1 (private-company transaction-multiple databases and primary PE deal data): GF Data private-company multiples, DealStats (BVR), BizComps, PeerComps, PitchBook, Preqin, Refinitiv, IBBA Market Pulse, BizBuySell aggregated data.

Tier 2 (sector-specific advisory, trade, and operational benchmarks):

• CPA: 2025 Rosenberg Survey (published November 2025), AICPA, Poe Group Advisors, Accounting Practice Sales, Whitman Transition Advisors, Succession Institute, CPA.com M&A quarterly, Capstone Partners 2025 Accounting Services M&A Update.
• RIA: DeVoe & Company 2025 RIA Deal Book (Q4 2024 Deal Book published February 2025 and quarterly updates through Q1 2026), ECHELON Partners RIA M&A Deal Report 2025, Fidelity Wealth Advisor Solutions Study 2024, Cerulli RIA benchmarking, InvestmentNews M&A tracker.
• Insurance: Reagan Consulting Organic Growth & Profitability Survey (quarterly through Q4 2025) and Value Report (Q4 2025), MarshBerry 2025 MERGE report, OPTIS Partners Agency Universe Study (Q4 2024 report published Q1 2025), Sica | Fletcher 2025 Agency and Broker Buyer Survey (published February 2026), IIABA / Big I market share reports.

Tier 3 (public comparables and named PE consolidator press coverage): SEC 10-K and 10-Q for RSM, CBIZ Inc, LPL Financial, Focus Financial Partners (take-private 2023), Marsh McLennan, Aon, Willis Towers Watson, Brown & Brown, Ryan Specialty, Arthur J. Gallagher; Bloomberg, Reuters, PitchBook, Accounting Today, Financial Advisor, Wealth Management, and Insurance Journal M&A coverage.

Sub-segments proxied or omitted

• Legal services (NAICS 5411): not covered in this pillar per parameter scope (professional services cluster is defined as CPA/accounting, RIA/wealth management, and insurance agency). A future pillar on legal services M&A multiples would draw on comparable methodology.
• Consulting and management advisory (NAICS 5416): not covered in this pillar per parameter scope.
• Architecture and engineering services (NAICS 5413): not covered in this pillar per parameter scope.
• Insurance carrier M&A: not covered in this pillar; scope is limited to insurance agency (distribution) M&A. Insurance carrier M&A is a distinct sub-vertical with different multiple bands and different regulatory context.
• Broker-dealer M&A: partially referenced through hybrid RIA transactions; not a primary focus.

Low-confidence figures

• Wealth Enhancement Group Genstar transaction enterprise value ($2.5B range) is based on Financial Advisor magazine coverage; precise multiple was not publicly disclosed and is presented as reported enterprise value only.
• TowerBrook / BDO USA transaction was not accompanied by publicly disclosed deal value or multiple; the transaction is referenced only for structural context (alternative practice structure) not for multiple benchmarking.
• Baker Tilly / Hellman & Friedman transaction was not accompanied by publicly disclosed deal value or multiple; the transaction is referenced only for structural context.
• Rollover equity share ranges reflect qualitative commentary from named sources rather than aggregated transaction-level data; ranges should be understood as observed patterns rather than statistical medians.

Verification pass (Master Prompt Section 10, 10 checks)

1. Zero em-dashes: verified. No em-dashes or en-dashes anywhere in title or body text.
2. Zero AI-tell phrases: verified against the project buzzword blocklist.
3. Every multiple carries earnings basis + size band + year + geography + source name: verified.
4. No blended SDE + EBITDA in one range: verified. Every range is presented on a single earnings basis with cross-basis translation flagged explicitly as illustrative.
5. Conditional language: verified. Ranges are presented as observed data from named sources, not as appraisals or recommendations.
6. No undisclosed named-deal multiples: verified. Focus Financial Partners multiple is presented at approximately 15x per publicly disclosed enterprise value; Wealth Enhancement Group and Acrisure enterprise values are presented as reported without multiple assertions; TowerBrook / BDO USA and Baker Tilly / Hellman & Friedman are referenced without multiples.
7. No fabrication; proxies labeled: verified.
8. Vintage and rate context: verified. Every range carries a vintage year; rate context is provided in the Trend and Trajectory section.
9. One statistic per sentence: verified across body sections.
10. Not-advice framing: verified in body Methodology section and reinforced in FAQ.

Last updated: June 29, 2026.