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Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
53
2011 Best
Practices Study
Agencies with
Revenues Between
$2,500,000 and
$5,000,000
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
4.3%
5.4%
5.9%
High
20.2%
Low
1.5%
10 Largest Accounts
16.5%
14.3%
17.8%
High
39.4%
Low
3.2%
Average
+25% Profit
+25% Growth
“Other” Group Revenue* (% from source)
Life
29.4%
10.6%
27.9%
Disability
16.6%
32.8%
13.3%
Dental & Vision
26.6%
37.0%
15.7%
Retirement/Pension
4.3%
6.0%
4.0%
Worksite/Voluntary/Supplement
7.5%
3.0%
8.7%
Long-Term Care
2.3%
4.2%
5.4%
Employee Benefits TPA
4.2%
0.0%
0.0%
All Other
9.1%
6.4%
25.0%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$85,747
Average
1.2x
High
$120,000
High
1.8x
Low
$49,636
Low
0.5x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
7.9%
$73,812
2.1%
Revenue by Acquisition
*Excludes Group Medical