134 / 186
AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000
EXECUTIVE
PERSPECTIVES
PROFILE
REVENUES/
EXPENSES
FINANCIAL
STABILITY
EMPLOYEE
OVERVIEW
PRODUCER
INFO
SERVICE
STAFF
INFO
TECHNOLOGY
INSURANCE
CARRIERS
APPENDIX
133
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
$1,667,583
High
$6,863,955
Low
$193,000
% of Agencies Acquiring Avg. Total Commissions
Acquired
% of
Net Revenues
21.9%
$2,008,692
13.0%
Multiples of Revenue Paid
Average
1.25x
High
1.50x
Low
1.00x
The % of agencies acquiring revenues is down from last year’s 37.0%. As
one participant stated,
“M&A is simply not a viable growth strategy for us any-
more -- we cannot compete with the larger players.”
Average
+25%
Profit
+25%
Growth
Health
68.2%
69.0%
69.8%
Life
11.3%
11.5%
14.3%
Disability
5.0%
4.5%
2.8%
Dental
5.9%
5.6%
3.6%
Retirement Products
2.8%
5.7%
1.0%
Employee Benefits (TPA)
1.5%
0.0%
4.1%
All Other
5.3%
3.6%
4.4%