58 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
58
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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%
29.2%
46.6%
41.0%
What the Typical Transaction Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$238,571
Average
1.76x
High
$650,000
High
2.25x
Low
$16,050
Low
1.50x
Acquired Revenues
% of Agencies
Acquiring
Average
Revenues
Acquired
% of
Net Revenues
Acquisitions Made in Last 12 Months
10.6%
$238,571
7.2%
Revenue by Acquisition
Revenue by Specialty/Niche
Average
Top 25% Profit
Top 25% Growth
% of Agencies having an Industry and/or
Product Specialty/Niche
59.6%
45.5%
63.6%
Total Commissions & Fees Generated from All
Specialties/Niches
$1,021,333
$1,603,691
$1,207,711
Total Specialty/Niche Revenue as % of Net
Revenues
29.2%
46.6%
41.0%
Specialty/Niche Revenue as % of Net Revenue