136 / 168
2015 Best
Practices Study
Agencies
with Revenues
Over
$25,000,000
136
Analysis of Agencies with Revenues Over $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%
34.2%
37.9%
37.1%
What the Typical Transaction Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$2,804,488
Average
1.39x
High
$6,359,500
High
2.50x
Low
$29,040
Low
0.40x
Acquired Revenues
% of Agencies
Acquiring
Average
Revenues
Acquired
% of
Net Revenues
Acquisitions Made in Last 12 Months
41.4%
$2,804,488
4.4%
Revenue by Acquisition
Revenue by Specialty/Niche
Average
Top 25% Profit
Top 25% Growth
% of Agencies having an Industry and/or
Product Specialty/Niche
72.4%
57.1%
71.4%
Total Commissions & Fees Generated from All
Specialties/Niches
$16,584,287
$19,384,234
$13,186,079
Total Specialty/Niche Revenue as % of Net
Revenues
34.2%
37.9%
37.1%
Specialty/Niche Revenue as % of Net Revenue