2001 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

E. Revenues Derived from Acquisitions Made in Last 12 Months % of Agencies Acquiring

Avg. Commissions Acquired

% of Net Revenues

10.0%

$183,034

10.1%

What the Typical Transaction Looked Like:

Revenues Acquired Per Transaction

Multiple of Revenues Paid

$0 $100,000 $200,000 $300,000 $400,000

0.0x 0.5x 1.0x 1.5x 2.0x 2.5x

average

high

low

average

high

low

Pricing Structure Used

0% 20% 40% 60% 80% 100%

variable

fixed

What was Acquired

Primary Currency Used

Stock Cash

Book of Business

Agency

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