2010 Best Practices Study
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
Revenue by Aquisition
Mgmt. Perspectives
Profile
Acquired Revenues
Revenues
Average Commissions Acquired
% of Agencies Acquiring
Percentage of Net Revenues
Expenses
Profitability
Acquisitions Made in Last 12 Months
2.3%
$167,364
9.9%
Employee Overview
Producer Info
What the Typical Transactions Looked Like Revenues Acquired per Transaction
Multiples of Revenue Paid
Staff Service Info
Average
* * *
Average
* * *
Technology
High Low
High Low
Insurance Carriers
*Insufficient Data
Appendix
Revenue by Account Concentration Average
+25% Profit
+25% Growth
% of Revenue Derived from: Largest Account
4.5%
4.0%
3.8%
High Low
13.4%
1.0%
10 Largest Accounts
16.5% 45.2%
16.8%
14.3%
High Low
1.0%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source) Life
34.4% 19.5% 20.5%
46.7%
24.4% 25.4% 30.6%
Disability
1.6%
Dental & Vision
14.7% 14.4%
Retirement/Pension
4.4% 8.2% 1.6% 0.3%
0.0%
Worksite/Voluntary/Supplement
0.0% 5.6% 0.0%
19.6%
Long-Term Care
0.0% 0.0% 0.0%
2010 Best Practices Study
Employee Benefits TPA
All Other
11.3%
17.0%
*Excludes Group Medical
Agencies with Revenues Between $1,250,000 and $2,500,000
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