2012 Best Practices Study

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

Revenue by Acquisition

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

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

6.6%

*

*

*Insufficient Data

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

*

Average

*

High

*

High

*

Low

*

Low

*

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

3.7%

4.2%

5.7%

High Low

10.0%

1.1%

10 Largest Accounts

14.3% 37.8%

17.4%

12.3%

High Low

3.8%

Average

+25% Profit

+25% Growth

“Other” Group Revenue**(% from source) Life

45.7% 25.3% 12.5%

55.0%

70.0%

Disability

2.5% 2.5% 0.0% 0.0% 0.0%

1.7% 1.7% 0.0% 0.0% 0.0%

Dental & Vision

Retirement/Pension

0.6% 2.2% 0.8%

Worksite/Voluntary/Supplement

Long-Term Care

Employee Benefits TPA

11.8%

40.0%

26.7%

2012 Best Practices Study

All Other

1.0%

0.0%

0.0%

**Excludes Group Medical

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

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