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Analysis of Agencies with Revenues Over $25,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
125
2012 Best
Practices Study
Agencies
with Revenues
Over
$25,000,000
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
3.2%
6.4%
5.8%
High
17.9%
Low
1.0%
10 Largest Accounts
9.5%
8.9%
8.3%
High
19.5%
Low
5.3%
Average
+25% Profit
+25% Growth
“Other” Group Revenue**(% from source)
Life
16.3%
18.5%
19.6%
Disability
15.1%
20.0%
20.0%
Dental & Vision
22.3%
25.3%
13.8%
Retirement/Pension
9.9%
8.9%
6.3%
Worksite/Voluntary/Supplement
3.9%
0.8%
10.7%
Long-Term Care
1.6%
1.2%
1.1%
Employee Benefits TPA
3.9%
-0.1%
16.5%
All Other
27.1%
25.5%
11.9%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$1,844,836
Average
1.5x
High
$7,000,000
High
2.2x
Low
$159,427
Low
1.1x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
36.8%
$5,021,103
9.4%
Revenue by Acquisition
**Excludes Group Medical
*Insufficient Data