2015 Best Practices Study

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

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 $238,571

% of Agencies Acquiring

% of Net Revenues

Acquisitions Made in Last 12 Months

10.6%

7.2%

What the Typical Transaction Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$238,571 $650,000 $16,050

Average

1.76x 2.25x 1.50x

High Low

High Low

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

59.6%

45.5%

63.6%

$1,021,333

$1,603,691

$1,207,711

29.2%

46.6%

41.0%

Specialty/Niche Revenue as % of Net Revenue

50%

46.6%

41.0%

40%

30%

29.2%

2015 Best Practices Study

20%

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

10%

0%

Average

Top 25% Profit

Top 25% Growth

58

Note: See page 163 for an explanation of column headings