127 / 191
2010 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
127
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
3.5%
3.9%
4.5%
High
9.2%
Low
1.0%
10 Largest Accounts
13.5%
16.0%
17.8%
High
28.9%
Low
1.2%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source)
Life
23.0%
22.7%
32.4%
Disability
20.2%
19.8%
24.3%
Dental & Vision
24.7%
24.0%
27.9%
Retirement/Pension
5.1%
7.4%
2.6%
Worksite/Voluntary/Supplement
4.6%
4.3%
3.0%
Long-Term Care
1.7%
2.8%
1.8%
Employee Benefits TPA
0.6%
2.0%
0.0%
All Other
20.1%
17.0%
8.1%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$1,489,587
Average
1.27x
High
$8,345,000
High
2.08x
Low
$12,900
Low
0.88x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
17.9%
$533,441
4.0%
Revenue by Aquisition
*Excludes Group Medical