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Analysis of Agencies with Revenues
Greater Than $10,000,000
What the Typical Transaction Looked Like:
D. Renewal Revenue as % of Prior Year's Total Revenues for Each Line of Business
Commercial P&C
97.2%
94.6%
100.3%
Personal P&C
94.2%
95.8%
97.8%
P&C Service Fees
77.4%
*
76.4%
Group L&H
92.0%
96.5%
91.2%
Individual L&H
50.7%
58.9%
46.0%
Total Commissions & Fees
93.5%
90.3%
97.0%
This figure is impacted by attrition (loss or retention of accounts) and by changes in premium and commission levels.
The higher the percentage, the more favorable the results.
Average
+25% Profit
+25% Growth
Revenues Acquired Per Transaction
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
average
high
low
Multiple of Revenues Paid
0.0x
0.5x
1.0x
1.5x
average
Primary Currency Used
Cash Both
What was Acquired
Book of Business
Agency
Pricing Structure Used
0%
20%
40%
60%
80%
100%
Variable
Fixed
Page 83
2003 Best Practices Study