2003 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

What the Typical Transaction Looked Like:

Revenues Acquired Per Transaction

Multiple of Revenues Paid

$0 $100,000 $200,000 $300,000 $400,000

1.6x 1.7x 1.8x 1.9x 2.0x 2.1x 2.2x

high

low

average

high

low

Pricing Structure Used

0% 20% 40% 60% 80% 100%

variable

fixed

Primary Currency Used

What was Acquired

Stock Cash Both

Book of Business

Agency

Page 41 2003 Best Practices Study