2008 Best Practices Study

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

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Revenues

% of Revenues Derived from:

Average

+25% Profit

+25% Growth

Largest Account

4.4%

3.3%

4.5%

High

12.2%

Low

1.1%

10 Largest Accounts

15.1% 32.8%

13.5%

20.2%

High

Low

3.0%

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

6.5%

$105,342

5.1%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$86,836 $40,609 $180,000 $39,898

Average

* * * *

Median

Median

High

High

Low

Low

*Insufficient Data

23 2008 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Revenues/Expenses