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2007 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses
Agencies with Revenues Between $10,000,000 and $25,000,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Services/Other Products Provided (% of Agencies Providing)
Average
+25% Profit
+25% Growth
Loss Control/Engineering
66.7%
80.0%
50.0%
Worker’s Comp Claims Adjusting/Admin (TPA)
14.8%
20.0%
0.0%
Group Health Insurance Claims Adjusting/Admin (TPA)
7.4%
20.0%
0.0%
Self Insurance Programs
37.0%
20.0%
16.7%
Risk Management Consulting
74.1%
80.0%
66.7%
Premium Financing (in-house vs. 3rd party)
33.3%
20.0%
16.7%
Pension/Profit Sharing/401K
55.6%
40.0%
33.3%
Human Resource Consulting
48.1%
40.0%
50.0%
Employee Leasing Products & Services (PEOs)
18.5%
20.0%
16.7%
Investment Products (Securities, Stocks)
22.2%
20.0%
33.3%
Other*
7.4%
0.0%
33.3%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$407,206
Average
1.32x
High
$790,000
High
1.90x
Low
$49,853
Low
1.00x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
13.3%
$464,940
4.1%
*Includes P&C loss adjusting, HR website, pool administration, paralegal and legal, MyWave, background checks, wellness, and
management consulting