2004 Best Practices Study

AGENCIES WITH REVENUES OVER $25,000,000

C. Revenues Derived from Acquisitions Made in the Last 12 Months

EXECUTIVE PERSPECTIVES

% of Agencies Acquiring Avg. Total Commissions Acquired

% of Net Revenues

46.7%

$819,837

1.9%

PROFILE

What the Typical Transaction Looked Like:

Multiples of Revenue Paid Average 1.6x High 3.0x Low 0.3x

Revenues Acquired per Transaction Average $619,433 High $2,000,000 Low $160,000

REVENUES/ EXPENSES

FINANCIAL STABILITY

“With the P&C market softening, we’re going to have to do more acquisitions to achieve the desired growth rates.”

EMPLOYEE OVERVIEW

D.

Group Life & Health Revenue Revenues from this line of business continue to increase in importance for most Best Practices agencies. 100% of the firms in this group have GLH revenues. Also see the Insurance Carriers section for the average number of GLH carriers represented.

PRODUCER INFO

SERVICE STAFF INFO

+25% Profit 49.8% 12.8%

+25% Growth 58.0% 15.3%

Average

Health

60.8%

Life

8.5% 6.8% 6.1% 5.3% 4.4% 8.1%

Disability

4.0% 9.0% 2.1% 8.1%

7.3% 6.2% 5.7% 2.0% 5.6%

TECHNOLOGY

Dental

Retirement Products

Employee Benefits (TPA)

INSURANCE CARRIERS

All Other

14.2%

APPENDIX

157