2009 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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

3.5% 9.0% 1.1%

4.2%

3.2%

High

Low

10 Largest Accounts

14.8% 47.2%

15.2%

14.7%

High

Low

1.9%

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

9.1%

$201,379

4.7%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$180,581 $198,600 $325,000 $18,142

Average

1.07x 1.30x 1.50x 0.40x

Median

Median

High

High

Low

Low

43 2009 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Revenues/Expenses