2009 Best Practices Study

Agencies with Revenues Over $25,000,000

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

2.7% 8.8% 1.0% 9.5%

2.2%

3.3%

High

Low

10 Largest Accounts

9.5%

11.7%

High

20.1%

Low

3.9%

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

55.6%

$3,393,048

5.5%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$1,839,302

Average

1.65x 1.51x 3.84x 1.00x

Median

$600,000

Median

High

$11,939,200

High

Low

$49,079

Low

103 2009 Best Practices Study | Agencies with Revenues Over $25,000,000 | Revenues/Expenses