136 / 168
2014 Best
Practices Study
Agencies
with
Revenues
Over
$25,000,000
136
Analysis of Agencies with Revenues Over $25,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$967,284
Average
1.25x
High
$2,998,725
High
1.90x
Low
$160,000
Low
1.00x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
% of
Net Revenues
Acquisitions Made in Last 12 Months
34.5%
$5,608,047
7.5%
Revenue by Acquisition
Revenue by Specialty/Niche
Average
+25% Profit
+25% Growth
% of Agencies having an Industry and/or
Product Specialty/Niche
69.0%
57.1%
42.9%
Total Commissions & Fees Generated from All
Specialties/Niches
$17,663,360
$10,141,281
$8,778,421
Total Specialty/Niche Revenue as % of Net
Revenues
34.1%
29.2%
17.1%
Specialty/Niche Revenue as % of Net Revenue
Average
+25% Profit
+25% Growth
10%
20%
30%
40%
50%
34.1%
17%
0%
29.2%