41 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
41
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
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
5%
10%
15%
20%
25%
30%
35%
0%
2008
EBITDA Margin
Operating Margin
2010
2007
2009
2011
2012
2013
2014
2015
22.5%
26.9%
9.7%
Pro Forma EBITDA
7.8%
6.4%
7.4% 8.0%
9.2%
12.2% 12.8% 13.3%
23.2%
30.1%
26.7%
34.0%
23.5%
27.7%
23.4% 23.0%
24.6%
25.1%
23.3%
29.3%
27.0% 27.4%
30.6%
31.1%
Profitability
About EBITDA Margin and Operating Margin
EBITDA Margin is calculated by dividing a firm’s EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) by the firm’s net revenues.
Pro Forma EBITDA Margin is calculated by dividing a firm’s Pro Forma EBITDA by the firm’s Pro Forma net revenue.
Operating Margin is calculated as EBITDA less contingent income divided by Pro Forma net revenues less
contingent income.
Historical EBITDA Margin & Operating Margin (for Average Group)