2010 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

Revenue by Aquisition

Mgmt. Perspectives

Profile

Acquired Revenues

Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Expenses

Profitability

Acquisitions Made in Last 12 Months

2.3%

$167,364

9.9%

Employee Overview

Producer Info

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Staff Service Info

Average

* * *

Average

* * *

Technology

High Low

High Low

Insurance Carriers

*Insufficient Data

Appendix

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

4.5%

4.0%

3.8%

High Low

13.4%

1.0%

10 Largest Accounts

16.5% 45.2%

16.8%

14.3%

High Low

1.0%

Average

+25% Profit

+25% Growth

“Other” Group Life & Health* Revenue (% from source) Life

34.4% 19.5% 20.5%

46.7%

24.4% 25.4% 30.6%

Disability

1.6%

Dental & Vision

14.7% 14.4%

Retirement/Pension

4.4% 8.2% 1.6% 0.3%

0.0%

Worksite/Voluntary/Supplement

0.0% 5.6% 0.0%

19.6%

Long-Term Care

0.0% 0.0% 0.0%

2010 Best Practices Study

Employee Benefits TPA

All Other

11.3%

17.0%

*Excludes Group Medical

Agencies with Revenues Between $1,250,000 and $2,500,000

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