2007 Best Practices Study

Agencies with Revenues Under $1,250,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Services/Other Products Provided (% of Agencies Providing) Average

+25% Profit

+25% Growth

Loss Control/Engineering

8.3% 0.0% 8.3% 8.3%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Worker’s Comp Claims Adjusting/Admin (TPA) Group Health Insurance Claims Adjusting/Admin (TPA)

Self Insurance Programs

Risk Management Consulting

25.0%

Premium Financing (in-house vs. 3rd party)

0.0%

Pension/Profit Sharing/401K Human Resource Consulting

58.3%

100.0%

100.0%

0.0% 8.3%

0.0% 0.0%

0.0%

Employee Leasing Products & Services (PEOs) Investment Products (Securities, Stocks)

20.0% 20.0%

25.0%

75.0%

Other*

0.0%

0.0%

0.0%

*Includes P&C loss adjusting, HR website, pool administration, paralegal and legal, MyWave, background checks, wellness, and management consulting

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

2.8%

$338,671

33.1%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

* * *

Average

* * *

High

High

Low

Low

*Insufficient Data

9 2007 Best Practices Study | Agencies with Revenues Under $1,250,000 | Revenues/Expenses