2008 Best Practices Study

Agencies with Revenues Between $10,000,000 and $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

3.4%

4.1%

2.5%

High

15.0%

Low

1.2%

10 Largest Accounts

13.3% 33.9%

16.6%

10.6%

High

Low

3.9%

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

22.0%

$996,497

7.1%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$679,362 $369,942

Average

1.2 1.1 2.8 0.1

Median

Median

High

$2,500,000

High

Low

$20,370

Low

83 2008 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses