2013 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Profitability

Historical EBITDA Margin & Operating Margin (for Average Group)

30%

25%

20.7%

21.0%

18.4%

17.6%

20%

16.8%

16.6%

16.3%

15%

9.6%

10%

6.5%

5.5%

5.6%

4.5%

3.7%

3.4%

5%

0%

2008

2007

2009

2010

2011

2012

2013

EBITDA Margin

Operating Margin

About EBITDA Margin and Operating Margin EEBITDA Margin is calculated by dividing a firm’s EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) by the firm’s net revenues.

Operating margin is calculated as EBITDA less contingent income divided by net revenues less contingent income.

2013 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

114