2011 Best Practices Study

Analysis of Agencies with Revenues Over $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

30.0%

$2,031,781

2.9%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$2,328,187

Average

1.6x

High

$7,100,000

High

2.0x

Low

$23,820

Low

0.5x

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

3.3%

6.1%

6.6%

High Low

19.1%

1.1% 9.4%

10 Largest Accounts

9.0%

9.5%

High Low

19.4%

3.2%

Average

+25% Profit

+25% Growth

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

15.1% 16.2% 20.0% 19.9%

25.6% 19.4% 16.6% 33.4%

10.0%

Disability

5.0%

Dental & Vision

25.0% 50.0%

Retirement/Pension

Worksite/Voluntary/Supplement

9.0% 1.5% 2.9%

1.2% 0.1% 0.0% 3.8%

5.0% 5.0% 0.0% 0.0%

Long-Term Care

Employee Benefits TPA

2011 Best Practices Study

All Other

15.4%

*Excludes Group Medical

Agencies with Revenues Over $25,000,000

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