2014 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

14.6%

$204,195

5.4%

Profitability

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Employee Overview

Multiples of Revenue Paid

Producer Info

Average

$198,174 $750,000 $90,100

Average

1.49x 1.85x

Service Staff Info

High Low

High Low

1.0x

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

58.3%

36.4%

63.6%

$1,094,029

$1,647,837

$882,661

29.1%

46.6%

15.6%

Specialty/Niche Revenue as % of Net Revenue

50%

46.6%

40%

29.1%

30%

2014 Best Practices Study

20%

15.6%

Agencies with Revenues Between $2,500,000 and $5,000,000

10%

0%

Average

+25% Profit

+25% Growth

58