2009 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

2.9% 8.5% 1.0%

3.6%

2.9%

High

Low

10 Largest Accounts

11.1% 36.5%

12.7%

9.1%

High

Low

1.4%

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

11.1%

$359,396

6.1%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$397,932 $370,467 $693,330 $130,000

Average

1.55x 1.55x 1.60x 1.50x

Median

Median

High

High

Low

Low

63 2009 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Revenues/Expenses