2001 Best Practices Study
Analysis of Agencies with Revenues Less Than $500,000
What the Typical Transaction Looked Like:
Revenues Acquired Per Transaction
Multiple of Revenues Paid
$0 $10,000 $20,000 $30,000 $40,000
1.5x
1.0x
0.5x
0.0x
average
high
low
average
high
low
Pricing Structure Used
0% 20% 40% 60% 80%
variable
fixed
Primary Currency Used
What was Acquired
Stock Cash
Book of Business
Agency
F. Renewal Revenue as % of Prior Year's Total Revenues for Each Line of Business
This figure is impacted by attrition (loss or retention of accounts) and by changes in premium and commission levels. The higher the percentage, the more favorable the results. Average +25% Profit +25% Growth
Commercial P&C
89.6% 95.1% 95.4% 72.7% 52.7% 84.1%
83.7% 97.7%
90.7% 100.0%
Personal P&C
P&C Service Fees
*
*
Group L&H
74.5% 57.9% 78.1%
64.8% 41.3% 93.5%
Individual L&H
Total Commissions & Fees
*-Insufficient Data
22
Made with FlippingBook