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Analysis of Agencies with Revenues
Between $1,250,000 and $2,500,000
What the Typical Transaction Looked Like:
Revenues Acquired Per Transaction
$0
$100,000
$200,000
$300,000
$400,000
high
low
Multiple of Revenues Paid
1.6x
1.7x
1.8x
1.9x
2.0x
2.1x
2.2x
average
high
low
What was Acquired
Book of Business
Agency
Pricing Structure Used
0%
20%
40%
60%
80%
100%
variable
fixed
Primary Currency Used
Stock Cash Both
Page 41
2003 Best Practices Study