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Analysis of Agencies with Revenues Under $1,250,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
5
2011 Best
Practices Study
Agencies with
Revenues
Under
$1,250,000
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
3.7%
3.3%
2.5%
High
10.5%
Low
1.2%
10 Largest Accounts
13.7%
11.9%
9.4%
High
43.7%
Low
1.5%
Average
+25% Profit
+25% Growth
“Other” Group Revenue* (% from source)
Life
53.9%
59.7%
99.7%
Disability
15.0%
23.3%
0.0%
Dental & Vision
13.1%
2.3%
0.0%
Retirement/Pension
0.0%
0.0%
0.0%
Worksite/Voluntary/Supplement
13.1%
1.7%
0.0%
Long-Term Care
4.9%
13.0%
0.3%
Employee Benefits TPA
0.0%
0.0%
0.0%
All Other
0.0%
0.0%
0.0%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$172,293
Average
1.1x
High
$294,000
High
0.2x
Low
$70,000
Low
2.0x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
8.1%
$110,910
11.8%
Revenue by Acquisition
*Excludes Group Medical