2025 Best Practices Study Summary

FINANCIAL STABILITY

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Current Ratio

0.56:1

2.07:1 1.94:1 14.5% 29.3%

1.97:1 2.64:1 33.9% 36.4%

2.20:1 2.58:1 17.3% 80.5% 12.6% 15.5% 28.5% 71.5%

1.70:1 2.46:1 18.5% 61.0% 11.0% 16.7% 31.8% 68.2%

1.55:1 2.04:1 19.8% 59.9%

1.20:1 1.43:1

Trust Ratio

N/A

Tangible Net Worth (% of Net Rev) Receivables-to-Payables Ratio Accounts Receivables: % Receivables Aged 61-90 Days % Receivables Aged Past 90 Days % of P&C Revenues - Agency Billed % of P&C Revenues - Direct Billed

12.1%

5.7%

194.4%

74.0%

0.4%

6.7% 8.3%

7.2%

9.1%

10.5%

N/A

38.9%

13.4%

7.7%

9.1%

17.4% 82.6%

17.2% 82.8%

42.6% 57.4%

41.9% 58.1%

90.9%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Current Ratio

0.68:1

3.76:1 2.27:1 21.8%

2.52:1 3.67:1 58.2% 11.2%

2.88:1 2.95:1 26.7% 50.1%

2.23:1 3.11:1 30.0% 36.6%

1.84:1 2.54:1 30.2% 45.0%

1.21:1 1.52:1

Trust Ratio

N/A

Tangible Net Worth (% of Net Rev) Receivables-to-Payables Ratio Accounts Receivables: % Receivables Aged 61-90 Days % Receivables Aged Past 90 Days

24.2%

9.9%

194.4%

4.0%

44.7%

0.0%

0.0% 3.7%

0.3%

0.1% 4.5%

0.7% 3.5%

0.7% 2.0%

1.4% 3.7%

N/A

15.8%

AGENCIES WITH REVENUES OF:

<$1.25M $1.25-2.5M $2.5-5M $5-10M $10-25M $25-100M >$100M

Debt Metrics: % of All Loans by Source Type: Community Bank

14.8% 14.8% 11.1% 11.1% 48.1%

52.3%

37.9% 17.4%

49.7%

39.5% 13.0%

30.9%

43.3%

Industry Lender

4.5% 1.1%

9.4% 0.0%

8.8% 6.4%

0.0%

Private Equity Lender

0.0%

6.4%

18.2% 38.5%

Shareholder

37.5%

32.6% 12.1%

24.0% 16.8%

27.3% 13.9%

31.9% 22.1%

Other

4.5%

0.0%

% of Firms that have Identified Debt

60.0%

40.7%

37.9%

45.8%

47.3%

47.2%

46.2%

Of those firms that have debt: Average Total Debt

$314,957

$508,378

$1,240,897

$1,775,111

$7,610,127

$13,724,822

$138,324,480

Total Leverage 1

1.5x 7.1%

1.3x 5.9%

1.1x 5.6%

1.1x 5.3%

1.7x 5.3%

1.4x 5.8%

4.1x 7.1%

Average Effective Interest Rate Average Term (Years to Maturity)

6.6

8.6

6.4

7.2

8.7

6.6

5.5

1 Total Debt/Pro Forma EBITDA

Cross Category Comparison

27