2008 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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

4.3%

3.9%

5.7%

High

14.0%

Low

1.0%

10 Largest Accounts

17.2% 44.0%

17.1%

13.2%

High

Low

3.6%

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

12.1%

$150,230

4.3%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$254,015 $260,000 $450,717 $45,345

Average

1.7

Median

Median

1.65 2.25

High

High

Low

Low

1.3

43 2008 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses