2015 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Revenue by Acquisition

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Acquired Revenues

Average Revenues Acquired $1,164,358

% of Agencies Acquiring

% of Net Revenues

Acquisitions Made in Last 12 Months

21.6%

9.0%

What the Typical Transaction Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$1,164,358 $3,200,000

Average

1.25x 2.00x 0.75x

High Low

High Low

$50,503

Revenue by Specialty/Niche

Average

Top 25% Profit

Top 25% Growth

% of Agencies having an Industry and/or Product Specialty/Niche Total Commissions & Fees Generated from All Specialties/Niches Total Specialty/Niche Revenue as % of Net Revenues

83.8%

77.8%

88.9%

$4,307,120

$5,022,965

$4,752,007

28.2%

38.6%

34.6%

Specialty/Niche Revenue as % of Net Revenue

50%

40%

38.6%

34.6%

28.2%

30%

2015 Best Practices Study

20%

Agencies with Revenues Between $10,000,000 and $25,000,000

10%

0%

Average

Top 25% Profit

Top 25% Growth

110

Note: See page 163 for an explanation of column headings