2004 Best Practices Study

AGENCIES WITH REVENUES UNDER $500,000

C. Revenues Derived from Acquisitions Made in the Last 12 Months

EXECUTIVE PERSPECTIVES

% of Agencies Acquiring Avg. Total Commissions Acquired

% of Net Revenues

0%

$0

0%

PROFILE

What the Typical Transaction Looked Like:

Multiples of Revenue Paid Average N/A High N/A Low N/A

Revenues Acquired per Transaction Average N/A High N/A Low N/A

REVENUES/ EXPENSES

FINANCIAL STABILITY

EMPLOYEE OVERVIEW

D.

Group Life & Health Revenue Revenues from this line of business continue to increase in importance for most Best Practices agencies. 75% of the firms in this group have GLH revenues. Also see the Insurance Carriers section for the average number of GLH carriers represented.

PRODUCER INFO

+25% Profit 88.3%

+25% Growth

SERVICE STAFF INFO

Average

Health

65.0% 18.5%

52.7%

Life

6.5% 1.2% 0.3% 1.5% 0.0% 2.2%

7.3% 0.7% 0.0%

Disability

2.0% 0.2%

TECHNOLOGY

Dental

Retirement Products

11.3%

35.0%

Employee Benefits (TPA)

0.0% 2.9%

0.0% 4.3%

INSURANCE CARRIERS

All Other

APPENDIX

13