110 / 186
AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000
EXECUTIVE
PERSPECTIVES
PROFILE
REVENUES/
EXPENSES
FINANCIAL
STABILITY
EMPLOYEE
OVERVIEW
PRODUCER
INFO
SERVICE
STAFF
INFO
TECHNOLOGY
INSURANCE
CARRIERS
APPENDIX
109
C.
Revenues Derived from Acquisitions Made in the Last 12 Months
What the Typical Transaction Looked Like:
D.
Group Life & Health Revenue
Revenues from this line of business continue to increase in importance for most Best
Practices agencies. 100% of the firms in this group have GLH revenues.
Also see the
Insurance Carriers
section for the average number of GLH carriers represented.
Revenues Acquired per Transaction
Average
$250,446
High
$813,033
Low
$30,739
% of Agencies Acquiring Avg. Total Commissions
Acquired
% of
Net Revenues
9.7%
$441,029
5.5%
Multiples of Revenue Paid
Average
1.36x
High
1.95x
Low
1.00x
The percentage of agencies in this study group that acquired revenues is
down from last year's 25%. However, M&A activity remains high in the indus-
try as financial institutions continue their advance into the insurance business
and national brokers continue to acquire agencies to expand their market
areas.
Average
+25%
Profit
+25%
Growth
Health
69.3%
73.0%
78.2%
Life
13.0%
11.2%
12.1%
Disability
5.8%
5.7%
3.8%
Dental
4.6%
6.3%
2.3%
Retirement Products
1.4%
1.6%
0.9%
Employee Benefits (TPA)
1.7%
1.7%
2.4%
All Other
4.2%
0.5%
0.4%