2013 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

17.6%

$45,645

2.3%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$103,860 $273,000 $23,778

Average

1.4x 2.0x 0.5x

High Low

High Low

Revenue by Account Concentration

Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

4.7%

5.0%

5.0%

High Low

15.9%

0.9%

10 Largest Accounts

15.4% 29.2%

16.9%

17.0%

High Low

3.0%

Average

+25% Profit

+25% Growth

“Other” Group Life & Health* Revenue (% from source) Life 29.0%

* * * * * * * *

* * * * * * * *

Disability

12.1% 21.8%

Dental & Vision

Retirement/Pension

0.8%

Worksite/Voluntary/Supplement

16.1%

2013 Best Practices Study

Long-Term Care

2.1% 8.1%

Employee Benefits TPA

All Other

10.0%

Agencies with Revenues Between $1,250,000 and $2,500,000

*Insufficient Data *Excludes Group Medical

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