2008 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Revenues

% of Revenues Derived from:

Average

+25% Profit

+25% Growth

Largest Account

3.3% 7.8% 1.1%

3.2%

3.7%

High

Low

10 Largest Accounts

11.6% 24.7%

9.8%

12.1%

High

Low

2.2%

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

14.8%

$367.179

5.5%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$302,006 $94,930

Average

1.0 0.5 1.5 0.3

Median

Median

High

$1,100,000

High

Low

$18,500

Low

63 2008 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses