2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $1,250,000 AND $2,500,000

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

EXECUTIVE PERSPECTIVES

% of Agencies Acquiring Avg. Total Commissions Acquired

% of Net Revenues

9.7%

$131,275

6.6%

PROFILE

What the Typical Transaction Looked Like:

Multiples of Revenue Paid Average 1.6x High 2.0x Low 1.5x

Revenues Acquired per Transaction Average $120,267 High $204,485 Low $37,826

REVENUES/ EXPENSES

FINANCIAL STABILITY

The percentage of agencies in this study group acquiring revenues remains about the same as last year although the revenues acquired are down from last year's $273,129.

EMPLOYEE OVERVIEW

D.

Group Life & Health Revenue Revenues from this line of business continue to increase in importance for most Best Practices agencies. 87.1% 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 62.4% 26.0%

+25% Growth 76.6% 11.4%

Average

Health

74.6% 14.8%

Life

Disability

3.0% 2.7% 2.9% 1.5% 0.6%

2.3% 1.4% 0.0% 6.7% 1.2%

4.4% 4.1% 3.1% 0.0% 0.4%

TECHNOLOGY

Dental

Retirement Products

Employee Benefits (TPA)

INSURANCE CARRIERS

All Other

APPENDIX

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