2009 Best Practices Study

Agencies with Revenues Between $1,250,000 and $2,500,000

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

4.4% 9.7% 1.2%

4.5%

5.6%

High

Low

10 Largest Accounts

15.1% 29.9%

15.3%

20.6%

High

Low

3.1%

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

11.1%

$403,775

16.2%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$345,583 $435,000 $595,000

Average

0.93x 0.80x 1.50x 0.50x

Median

Median

High

High

Low

$6,750

Low

23 2009 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Revenues/Expenses