2001 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

E. Revenues Derived from Acquisitions Made in Last 12 Months % of Agencies Acquiring

Avg. Commissions Acquired

% of Net Revenues

16.1%

$201,876

6.0%

What the Typical Transaction Looked Like:

Revenues Acquired Per Transaction

Multiple of Revenues Paid

$0 $200,000 $400,000 $600,000 $800,000

0.0x 0.5x 1.0x 1.5x 2.0x 2.5x

average

high

low

average

high

low

Pricing Structure Used

0% 10% 20% 30% 40% 50% 60%

variable

fixed

What was Acquired

Primary Currency Used

Stock Cash

Book of Business

Agency

88