2014 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

10.7%

$164,655

7.7%

Profitability

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Employee Overview

Multiples of Revenue Paid

Producer Info

Average

$141,322 $240,525 $80,000

Average

1.59x 2.00x 1.25x

Service Staff Info

High Low

High Low

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

57.1%

66.7%

83.3%

$382,669

$629,573

$115,084

15.1%

*

6.0%

*Insufficient Data

Specialty/Niche Revenue as % of Net Revenue

25%

20%

15.1%

15%

2014 Best Practices Study

10%

6.0%

Agencies with Revenues Between $1,250,000 and $2,500,000

5%

0%

Average

+25% Profit

+25% Growth

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