2013 Best Practices Study

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

Revenue by Acquisition

Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

% of Net Revenues

Acquisitions Made in Last 12 Months

6.7%

$111,752

4.2%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$156,945 $297,975 $75,000

Average

1.5x 1.5x 1.5x

High Low

High Low

Revenue by Account Concentration

Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

4.1%

3.0%

3.1%

High Low

23.7%

0.6%

10 Largest Accounts

16.6% 39.0%

13.0%

17.2%

High Low

3.0%

Average

+25% Profit

+25% Growth

“Other” Group Life & Health* Revenue (% from source) Life 30.6%

* * * * * * * *

31.8% 14.0% 43.0%

Disability

17.5% 28.9%

Dental & Vision

Retirement/Pension

6.7% 7.4% 4.3% 0.3% 4.4%

0.0% 5.2% 6.0% 0.0% 0.0%

Worksite/Voluntary/Supplement

2013 Best Practices Study

Long-Term Care

Employee Benefits TPA

All Other

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

*Insufficient Data

*Excludes Group Medical

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