72 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
72
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
4.1%
3.0%
3.1%
High
23.7%
Low
0.6%
10 Largest Accounts
16.6%
13.0%
17.2%
High
39.0%
Low
3.0%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source)
Life
30.6%
*
31.8%
Disability
17.5%
*
14.0%
Dental & Vision
28.9%
*
43.0%
Retirement/Pension
6.7%
*
0.0%
Worksite/Voluntary/Supplement
7.4%
*
5.2%
Long-Term Care
4.3%
*
6.0%
Employee Benefits TPA
0.3%
*
0.0%
All Other
4.4%
*
0.0%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$156,945
Average
1.5x
High
$297,975
High
1.5x
Low
$75,000
Low
1.5x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
% of
Net Revenues
Acquisitions Made in Last 12 Months
6.7%
$111,752
4.2%
Revenue by Acquisition
*Insufficient Data
*Excludes Group Medical