2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000

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

For the third straight year the agencies in this study group did not report any revenues derived from an acquisition, perhaps a reflection of the difficulty this size agency has in raising capital for such investments. Nevertheless, they still achieved a 15.3% growth rate in net revenues.

EMPLOYEE OVERVIEW

D.

Group Life & Health Revenue Revenues from this line of business continue to increase in importance for most Best Practices agencies. 80% 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

SERVICE STAFF INFO

+25% Profit 68.1% 27.2%

+25% Growth

Average

Health

68.6% 20.3%

89.5%

Life

3.2% 3.2% 1.2% 0.3% 0.2% 2.5%

Disability

3.8% 1.2% 1.3% 0.0% 4.8%

1.7% 0.6% 0.8% 0.0% 1.7%

TECHNOLOGY

Dental

Retirement Products

Employee Benefits (TPA)

INSURANCE CARRIERS

All Other

APPENDIX

37