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2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses
Agencies with Revenues Between $2,500,000 and $5,000,000
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
27.3%
20.0%
28.6%
Worker’s Comp Claims Adjusting/Admin (TPA)
4.5%
0.0%
0.0%
Group Health Insurance Claims Adjusting/Admin (TPA)
4.5%
0.0%
0.0%
Self Insurance Programs
22.7%
0.0%
0.0%
Risk Management Consulting
50.0%
40.0%
42.9%
Premium Financing (in-house vs. 3rd party)
45.5%
40.0%
14.3%
Pension/Profit Sharing/401K
40.9%
40.0%
28.6%
Human Resource Consulting
9.1%
0.0%
0.0%
Employee Leasing Products & Services (PEOs)
13.6%
0.0%
28.6%
Investment Products (Securities, Stocks)
18.2%
20.0%
14.3%
Other*
22.7%
0.0%
28.6%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$250,000
Average
1.70x
High
$400,000
High
2.00x
Low
$100,000
Low
1.40x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
3.3%
$462,070
10.8%
*Includes P&C loss adjusting, HR website, pool administration, paralegal and legal, MyWave, background checks, wellness, and
management consulting