86 / 186
AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000
EXECUTIVE
PERSPECTIVES
PROFILE
REVENUES/
EXPENSES
FINANCIAL
STABILITY
EMPLOYEE
OVERVIEW
PRODUCER
INFO
SERVICE
STAFF
INFO
TECHNOLOGY
INSURANCE
CARRIERS
APPENDIX
85
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. 87.5% 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
$181,576
High
$490,420
Low
$29,615
% of Agencies Acquiring Avg. Total Commissions
Acquired
% of
Net Revenues
21.9%
$188,700
5.4%
Multiples of Revenue Paid
Average
1.25x
High
1.60x
Low
1.00x
While the percentage of agencies acquiring revenues is up from last year's
13.3%, the total average revenues acquired is down from last year’s $219,978.
Average
+25%
Profit
+25%
Growth
Health
70.5%
63.2%
66.3%
Life
18.3%
23.6%
30.1%
Disability
4.8%
7.4%
1.1%
Dental
3.7%
1.4%
2.1%
Retirement Products
1.5%
3.3%
0.3%
Employee Benefits (TPA)
0.3%
0.4%
0.0%
All Other
0.9%
0.7%
0.0%