2011 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

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

18.6%

$159,472

2.3%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$223,406

Average

1.4x

High

$413,000

High

2.2x

Low

$20,573

Low

1.0x

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

4.3%

3.5%

5.0%

High Low

16.0%

1.0%

10 Largest Accounts

14.9% 47.2%

10.7%

15.1%

High Low

1.6%

Average

+25% Profit

+25% Growth

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

30.2% 17.0% 30.1%

34.0% 22.5% 23.8%

21.1% 15.0% 23.4%

Disability

Dental & Vision

Retirement/Pension

3.5% 1.8% 4.5% 4.1% 8.6%

1.4% 1.3% 1.8%

5.6% 2.1%

Worksite/Voluntary/Supplement

Long-Term Care

14.5%

Employee Benefits TPA

12.1%

1.3%

2011 Best Practices Study

All Other

3.0%

17.2%

*Excludes Group Medical

Agencies with Revenues Between $5,000,000 and $10,000,000

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