2008 Best Practices Study

Agencies with Revenues Over $25,000,000

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Revenues

% of Revenues Derived from:

Average

+25% Profit

+25% Growth

Largest Account

2.4% 4.5% 1.0% 9.1%

2.2%

2.8%

High

Low

10 Largest Accounts

8.5%

9.2%

High

18.5%

Low

4.1%

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

60.0%

$3,439,440

5.3%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$1,997,672

Average

1.75

Median

$951,620

Median

1.6 5.5

High

$8,895,144

High

Low

$11,120

Low

1

103 2008 Best Practices Study | Agencies with Revenues Over $25,000,000 | Revenues/Expenses