158 / 186
AGENCIES WITH REVENUES OVER $25,000,000
EXECUTIVE
PERSPECTIVES
PROFILE
REVENUES/
EXPENSES
FINANCIAL
STABILITY
EMPLOYEE
OVERVIEW
PRODUCER
INFO
SERVICE
STAFF
INFO
TECHNOLOGY
INSURANCE
CARRIERS
APPENDIX
157
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
$619,433
High
$2,000,000
Low
$160,000
% of Agencies Acquiring Avg. Total Commissions
Acquired
% of
Net Revenues
46.7%
$819,837
1.9%
Multiples of Revenue Paid
Average
1.6x
High
3.0x
Low
0.3x
“With the P&C market softening, we’re going to have to do more acquisitions
to achieve the desired growth rates.”
Average
+25%
Profit
+25%
Growth
Health
60.8%
49.8%
58.0%
Life
8.5%
12.8%
15.3%
Disability
6.8%
4.0%
7.3%
Dental
6.1%
9.0%
6.2%
Retirement Products
5.3%
2.1%
5.7%
Employee Benefits (TPA)
4.4%
8.1%
2.0%
All Other
8.1%
14.2%
5.6%