2015 Best Practices Study

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

Revenue by Acquisition

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

Acquired Revenues

Average Revenues Acquired $2,804,488

% of Agencies Acquiring

% of Net Revenues

Acquisitions Made in Last 12 Months

41.4%

4.4%

What the Typical Transaction Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$2,804,488 $6,359,500

Average

1.39x 2.50x 0.40x

High Low

High Low

$29,040

Revenue by Specialty/Niche

Average

Top 25% Profit

Top 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

72.4%

57.1%

71.4%

$16,584,287

$19,384,234

$13,186,079

34.2%

37.9%

37.1%

Specialty/Niche Revenue as % of Net Revenue

50%

40%

37.9%

37.1%

34.2%

30%

2015 Best Practices Study

20%

Agencies with Revenues Over $25,000,000

10%

0%

Average

Top 25% Profit

Top 25% Growth

136

Note: See page 163 for an explanation of column headings