2009 Best Practices Study

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

3.9%

5.1%

2.2%

High

15.7%

Low

1.2%

10 Largest Accounts

13.3% 46.9%

16.2%

8.9%

High

Low

3.2%

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

13.2%

$353,240

2.4%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$309,477 $170,590 $958,779 $100,000

Average

1.34x 1.10x 2.50x 0.60x

Median

Median

High

High

Low

Low

83 2009 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Revenues/Expenses