2015 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

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 $213,952

% of Agencies Acquiring

% of Net Revenues

Acquisitions Made in Last 12 Months

14.3%

2.6%

What the Typical Transaction Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$213,952 $1,249,791

Average

1.48x 1.80x 1.25x

High Low

High Low

$21,806

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

74.3%

87.5%

75.0%

$1,907,041

$2,310,391

$1,808,058

27.0%

31.1%

31.9%

Specialty/Niche Revenue as % of Net Revenue

50%

40%

31.9%

31.1%

30%

27.0%

2015 Best Practices Study

20%

Agencies with Revenues Between $5,000,000 and $10,000,000

10%

0%

Average

Top 25% Profit

Top 25% Growth

84

Note: See page 163 for an explanation of column headings