2011 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Revenue by Acquisition

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

8.6%

$1,915,099

9.8%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$1,880,277

Average

1.3x

High

$8,345,000

High

2.1x

Low

$149,718

Low

0.9x

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

4.0%

6.9%

6.7%

High Low

24.7%

1.0%

10 Largest Accounts

13.9% 32.9%

16.1%

14.4%

High Low

3.5%

Average

+25% Profit

+25% Growth

“Other” Group Revenue* (% from source) Life

28.3% 20.1% 24.2%

28.1% 21.2% 25.4% 10.3%

28.1% 17.2% 15.0% 15.4%

Disability

Dental & Vision

Retirement/Pension

6.3% 5.9% 1.6% 1.9%

Worksite/Voluntary/Supplement

5.7% 2.0% 1.7% 5.6%

6.7% 1.4% 3.3%

Long-Term Care

Employee Benefits TPA

2011 Best Practices Study

All Other

11.8%

12.9%

*Excludes Group Medical

Agencies with Revenues Between $10,000,000 and $25,000,000

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