2014 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Revenue by Acquisition

Key Benchmarks

Profile Revenues

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

% of Net Revenues

Expenses

Acquisitions Made in Last 12 Months

17.1%

$678,239

4.7%

Profitability

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Employee Overview

Multiples of Revenue Paid

Producer Info

Average

$1,535,443 $2,933,293

Average

1.46x 2.00x 1.00x

Service Staff Info

High Low

High Low

$600,000

Technology

Insurance Carriers

Appendix

Revenue by Specialty/Niche

Average

+25% Profit

+25% Growth

% of Agencies having an Industry and/or Product Specialty/Niche Total Commissions & Fees Generated from All Specialties/Niches Total Specialty/Niche Revenue as % of Net Revenues

82.9%

62.5%

87.5%

$4,706,916

$7,280,317

$6,275,190

28.1%

52.1%

23.7%

Specialty/Niche Revenue as % of Net Revenue

52.1%

50%

40%

28.1%

30%

23.7%

2014 Best Practices Study

20%

Agencies with Revenues Between $10,000,000 and $25,000,000

10%

0%

Average

+25% Profit

+25% Growth

110