58 / 168
2014 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
58
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
$198,174
Average
1.49x
High
$750,000
High
1.85x
Low
$90,100
Low
1.0x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
% of
Net Revenues
Acquisitions Made in Last 12 Months
14.6%
$204,195
5.4%
Revenue by Acquisition
Revenue by Specialty/Niche
Average
+25% Profit
+25% Growth
% of Agencies having an Industry and/or
Product Specialty/Niche
58.3%
36.4%
63.6%
Total Commissions & Fees Generated from All
Specialties/Niches
$1,094,029
$1,647,837
$882,661
Total Specialty/Niche Revenue as % of Net
Revenues
29.1%
46.6%
15.6%
Specialty/Niche Revenue as % of Net Revenue
Average
+25% Profit
+25% Growth
10%
20%
30%
40%
50%
29.1%
15.6%
0%
46.6%