84 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
84
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
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%
27.0%
31.1%
31.9%
What the Typical Transaction Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$213,952
Average
1.48x
High
$1,249,791
High
1.80x
Low
$21,806
Low
1.25x
Acquired Revenues
% of Agencies
Acquiring
Average
Revenues
Acquired
% of
Net Revenues
Acquisitions Made in Last 12 Months
14.3%
$213,952
2.6%
Revenue by Acquisition
Revenue by Specialty/Niche
Average
Top 25% Profit
Top 25% Growth
% of Agencies having an Industry and/or
Product Specialty/Niche
74.3%
87.5%
75.0%
Total Commissions & Fees Generated from All
Specialties/Niches
$1,907,041
$2,310,391
$1,808,058
Total Specialty/Niche Revenue as % of Net
Revenues
27.0%
31.1%
31.9%
Specialty/Niche Revenue as % of Net Revenue