2023 Best Practices Study

EBITDA

36.4%

35.8%

35.8%

29.3%

29.1%

27.5%

26.5%

25.7%

25.4%

23.2%

22.4%

20.0%

< $1.25M

$1.25-$2.5M

$2.5-$5M

$5-$10M

$10-$25M

> $25M

Average Top Quartile

Pro Forma EBITDA

39.8%

36.9%

34.1%

33.1%

31.0%

30.9%

27.7%

27.2%

26.6%

25.8%

25.2%

21.9%

< $1.25M

$1.25-$2.5M

$2.5-$5M

$5-$10M

$10-$25M

> $25M

Average Top Quartile

Note : Pro Forma EBITDA excludes all administrative expenses (depreciation, amortization of intangibles, officer life, interest and other.)

AGENCIES WITH REVENUES OF:

AVERAGE

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

Pre-Tax Profit

22.4%

24.4%

23.4%

19.7%

20.9%

14.3%

Pro Forma Pre-Tax Profit

22.8%

26.7%

24.3%

22.1%

22.5%

15.8%

Operating Profit 1

15.4%

14.9%

12.9%

13.0%

13.2%

8.3%

Pro Forma Operating Profit

15.6%

18.7%

15.2%

15.6%

15.0%

9.8%

EBITDA

25.7%

27.5%

25.4%

22.4%

23.2%

20.0%

Pro Forma EBITDA 2

26.6%

30.9%

27.2%

25.2%

25.8%

21.9%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

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

Pre-Tax Profit

33.3%

35.5%

33.2%

27.4%

26.4%

21.9%

Pro Forma Pre-Tax Profit

32.5%

37.9%

33.2%

28.0%

28.6%

22.1%

Operating Profit 1

25.8%

25.5%

22.4%

22.8%

19.8%

14.2%

Pro Forma Operating Profit

22.2%

31.1%

25.7%

23.1%

21.6%

15.4%

EBITDA

36.4%

35.8%

35.8%

29.3%

29.1%

26.5%

Pro Forma EBITDA 2

34.1%

39.8%

36.9%

31.0%

33.1%

27.7%

1 Operating profit is pre-tax profit less contingent income and less bonus/override income. 2 Pro Forma EBITDA excludes all administrative expenses (depreciation, amortization of intangibles, officer life, interest and other).

Cross Category Comparison

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