2011 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

Revenue by Acquisition

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

8.1%

$110,910

11.8%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$172,293

Average

1.1x

High

$294,000

High

0.2x

Low

$70,000

Low

2.0x

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

3.7%

3.3%

2.5%

High Low

10.5%

1.2%

10 Largest Accounts

13.7% 43.7%

11.9%

9.4%

High Low

1.5%

Average

+25% Profit

+25% Growth

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

53.9% 15.0% 13.1%

59.7% 23.3%

99.7%

Disability

0.0% 0.0% 0.0% 0.0% 0.3% 0.0% 0.0%

Dental & Vision

2.3% 0.0% 1.7%

Retirement/Pension

0.0%

Worksite/Voluntary/Supplement

13.1%

Long-Term Care

4.9% 0.0% 0.0%

13.0%

Employee Benefits TPA

0.0% 0.0%

2011 Best Practices Study

All Other

*Excludes Group Medical

Agencies with Revenues Under $1,250,000

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