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2007 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Revenues/Expenses
Agencies with Revenues Between $1,250,000 and $2,500,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Services/Other Products Provided (as % of Agencies Providing)
Average
+25% Profit
+25% Growth
Loss Control/Engineering
18.8%
0.0%
0.0%
Worker’s Comp Claims Adjusting/Admin (TPA)
0.0%
0.0%
0.0%
Group Health Insurance Claims Adjusting/Admin (TPA)
6.3%
0.0%
0.0%
Self Insurance Programs
6.3%
0.0%
33.3%
Risk Management Consulting
18.8%
0.0%
0.0%
Premium Financing (in-house vs. 3rd party)
43.8%
60.0%
100.0%
Pension/Profit Sharing/401K
37.5%
40.0%
0.0%
Human Resource Consulting
18.8%
0.0%
0.0%
Employee Leasing Products & Services (PEOs)
25.0%
0.0%
33.3%
Investment Products (Securities, Stocks)
31.3%
40.0%
0.0%
Other*
6.3%
0.0%
0.0%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
*
Average
*
High
*
High
*
Low
*
Low
*
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
3.3%
$120,523
7.1%
“I hate to think what our new business would look like if
we were focusing exclusively on main street business.
The niches that we’ve developed have really allowed us
become the most knowledgeable people in the state on
certain risks. Many of the generalists in this agency are
really finding it a tough go in this market.”
*Includes P&C loss adjusting, HR website, pool administration, paralegal and legal, MyWave, background checks, wellness, and
management consulting
*Insufficient Data