2014 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

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

10.8%

$199,677

2.6%

Profitability

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Employee Overview

Multiples of Revenue Paid

Producer Info

Average

$151,139 $327,948 $16,450

Average

1.5x 1.5x 1.5x

Service Staff Info

High Low

High Low

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

67.6%

77.8%

66.7%

$1,749,439

$1,753,701

$2,404,538

26.2%

29.4%

33.9%

Specialty/Niche Revenue as % of Net Revenue

50%

40%

33.9%

29.4%

30%

26.2%

2014 Best Practices Study

20%

Agencies with Revenues Between $5,000,000 and $10,000,000

10%

0%

Average

+25% Profit

+25% Growth

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