2020 Best Practices Study

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Current Ratio

1.45:1 1.66:1

2.15:1 1.59:1 12.7% 36.9% -6.2% 5.8% 18.5% 81.5%

2.12:1 1.95:1 15.5% 39.2% 20.5% 14.3% 30.3% 69.7%

1.71:1 1.99:1 12.7% 35.0% 17.3% 14.5% 30.7% 69.3%

1.67:1 2.41:1 11.4% 51.8% 11.5% 10.4% 30.4% 64.1%

1.55:1 1.81:1 11.2% 49.1%

Trust Ratio

Tangible Net Worth (% of Net Rev) Receivables-to-Payables Ratio Accounts Receivables: % Receivables Aged 61-90 Days

5.0%

44.1%

52.9%

6.3%

% Receivables Aged Past 90 Days

7.3%

10.3%

% of P&C Revenues - Agency Billed % of P&C Revenues - Direct Billed

16.3% 76.3%

50.2% 47.5%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Current Ratio

3.00:1 2.91:1 20.8%

4.09:1 2.35:1 28.3%

3.45:1 3.24:1 30.3%

2.80:1 3.25:1 31.1% -4.2%

2.41:1 3.88:1 28.1% 10.7%

2.46:1 3.05:1 28.4% 18.0%

Trust Ratio

Tangible Net Worth (% of Net Rev) Receivables-to-Payables Ratio Accounts Receivables: % Receivables Aged 61-90 Days

8.9%

6.1%

5.0%

5.8% 6.4%

-36.2% -34.8%

-19.9%

-4.8% -5.5%

-5.7% -9.9%

0.1% -1.2%

% Receivables Aged Past 90 Days

-2.0%

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Debt Metrics: % of All Loans by Source Type: Community Bank

55.2%

58.3%

39.5% 13.2%

45.3%

35.6%

35.4%

Industry Lender

6.9%

5.6% 2.8%

3.8% 9.4% 5.7%

5.9% 0.0%

3.0% 2.0%

Private Equity Lender

10.3%

5.3%

Shareholder

6.9%

11.1% 22.2%

21.1% 21.1%

39.6% 18.8%

30.3% 29.3%

Other

20.7%

35.8%

% of Firms that have Identified Debt

40.7%

50.0%

41.5%

38.6%

72.2%

60.5%

Of those firms that have debt: Average Total Debt

$546,184

$720,930 $1,005,462 $1,760,997 $2,942,809 $12,841,811

Total Leverage 1

1.5x 5.4%

1.4x 4.9%

1.0x 4.3%

1.0x 4.3%

0.7x 4.4%

1.0x 4.2%

Average Effective Interest Rate Average Term (Years to Maturity)

5.0

4.9

5.9

6.2

4.7

5.4

1 Total Debt / Pro Forma EBITDA

 63