2011 Best Practices Study

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

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

2.9%

$224,980

10.2%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

*

Average

*

High

*

High

*

Low

*

Low

*

*Insufficient Data

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

4.1%

3.9%

4.3%

High Low

12.2%

1.0%

10 Largest Accounts

15.5% 40.9%

18.3%

12.6%

High Low

1.2%

Average

+25% Profit

+25% Growth

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

44.5% 15.0% 13.8%

75.0%

43.4% 15.4% 21.0%

Disability

0.1% 0.5% 0.5% 0.0% 0.1% 0.0%

Dental & Vision

Retirement/Pension

0.6% 1.8% 1.1% 0.9%

0.4% 0.0% 0.8% 0.0%

Worksite/Voluntary/Supplement

Long-Term Care

Employee Benefits TPA

2011 Best Practices Study

All Other

22.2%

23.7%

19.0%

*Excludes Group Medical

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

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