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Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
77
2012 Best
Practices Study
Agencies with
Revenues Between
$5,000,000 and
$10,000,000
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
4.4%
5.6%
5.8%
High
14.9%
Low
1.0%
10 Largest Accounts
14.9%
16.5%
20.8%
High
41.2%
Low
2.0%
Average
+25% Profit
+25% Growth
“Other” Group Revenue**(% from source)
Life
23.0%
30.6%
20.4%
Disability
15.0%
17.8%
18.1%
Dental & Vision
35.6%
32.5%
35.4%
Retirement/Pension
3.7%
7.3%
8.8%
Worksite/Voluntary/Supplement
5.2%
1.0%
4.5%
Long-Term Care
4.1%
1.7%
2.6%
Employee Benefits TPA
5.3%
0.6%
1.1%
All Other
8.0%
8.5%
9.0%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$206,057
Average
1.4x
High
$450,000
High
2.0x
Low
$51,596
Low
1.0x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
14.3%
$217,919
3.1%
Revenue by Acquisition
**Excludes Group Medical
*Insufficient Data