2010 Best Practices Study
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
8.1%
$295,746
9.9%
Employee Overview
Producer Info
What the Typical Transactions Looked Like Revenues Acquired per Transaction
Multiples of Revenue Paid
Staff Service Info
Average
$198,858 $400,000 $46,576
Average
0.88x 1.00x 0.75x
Technology
High Low
High Low
Insurance Carriers
Appendix
Revenue by Account Concentration Average
+25% Profit
+25% Growth
% of Revenue Derived from: Largest Account
4.3%
3.2%
6.4%
High Low
23.2%
1.0%
10 Largest Accounts
13.3% 32.8%
13.2%
14.3%
High Low
3.2%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source) Life
30.7% 15.8% 31.9%
30.5% 15.6% 39.5%
28.7% 18.0% 30.8%
Disability
Dental & Vision
Retirement/Pension
4.0% 7.7% 1.2% 1.5% 7.2%
2.9% 8.7% 0.2% 0.0% 2.5%
1.9%
Worksite/Voluntary/Supplement
11.4%
Long-Term Care
1.1% 0.0% 8.1%
2010 Best Practices Study
Employee Benefits TPA
All Other
*Excludes Group Medical
Agencies with Revenues Between $2,500,000 and $5,000,000
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