2014 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

Revenue by Acquisition

Key Benchmarks

Profile Revenues

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

% of Net Revenues

Expenses

Acquisitions Made in Last 12 Months

34.5%

$5,608,047

7.5%

Profitability

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Employee Overview

Multiples of Revenue Paid

Producer Info

Average

$967,284

Average

1.25x 1.90x 1.00x

Service Staff Info

High Low

$2,998,725

High Low

$160,000

Technology

Insurance Carriers

Appendix

Revenue by Specialty/Niche

Average

+25% Profit

+25% Growth

% of Agencies having an Industry and/or Product Specialty/Niche Total Commissions & Fees Generated from All Specialties/Niches Total Specialty/Niche Revenue as % of Net Revenues

69.0%

57.1%

42.9%

$17,663,360

$10,141,281

$8,778,421

34.1%

29.2%

17.1%

Specialty/Niche Revenue as % of Net Revenue

50%

40%

34.1%

29.2%

30%

2014 Best Practices Study

20%

17%

Agencies with Revenues Over $25,000,000

10%

0%

Average

+25% Profit

+25% Growth

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