110 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
110
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Note: See page 163 for an explanation of column headings
Average
Top 25% Profit
Top 25% Growth
10%
20%
30%
40%
50%
0%
28.2%
38.6%
34.6%
What the Typical Transaction Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$1,164,358
Average
1.25x
High
$3,200,000
High
2.00x
Low
$50,503
Low
0.75x
Acquired Revenues
% of Agencies
Acquiring
Average
Revenues
Acquired
% of
Net Revenues
Acquisitions Made in Last 12 Months
21.6%
$1,164,358
9.0%
Revenue by Acquisition
Revenue by Specialty/Niche
Average
Top 25% Profit
Top 25% Growth
% of Agencies having an Industry and/or
Product Specialty/Niche
83.8%
77.8%
88.9%
Total Commissions & Fees Generated from All
Specialties/Niches
$4,307,120
$5,022,965
$4,752,007
Total Specialty/Niche Revenue as % of Net
Revenues
28.2%
38.6%
34.6%
Specialty/Niche Revenue as % of Net Revenue