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Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
101
2012 Best
Practices Study
Agencies with
Revenues Between
$10,000,000 and
$25,000,000
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
3.2%
4.8%
2.7%
High
9.5%
Low
1.2%
10 Largest Accounts
13.6%
18.6%
13.2%
High
34.4%
Low
1.2%
Average
+25% Profit
+25% Growth
“Other” Group Revenue**(% from source)
Life
22.7%
23.9%
22.9%
Disability
16.2%
21.5%
14.5%
Dental & Vision
26.6%
46.4%
11.9%
Retirement/Pension
7.7%
0.2%
15.7%
Worksite/Voluntary/Supplement
6.2%
2.3%
4.2%
Long-Term Care
1.3%
2.5%
0.5%
Employee Benefits TPA
4.4%
0.0%
16.0%
All Other
12.0%
3.3%
14.5%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$1,509,748
Average
1.3x
High
$3,267,254
High
1.6x
Low
$545,000
Low
1.0x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
17.1%
$2,224,109
14.6%
Revenue by Acquisition
**Excludes Group Medical
*Insufficient Data