2012 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

17.1%

$2,224,109

14.6%

*Insufficient Data

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$1,509,748

Average

1.3x

High

$3,267,254

High

1.6x

Low

$545,000

Low

1.0x

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

3.2% 9.5% 1.2%

4.8%

2.7%

High Low

10 Largest Accounts

13.6% 34.4%

18.6%

13.2%

High Low

1.2%

Average

+25% Profit

+25% Growth

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

22.7% 16.2% 26.6%

23.9% 21.5% 46.4%

22.9% 14.5% 11.9% 15.7%

Disability

Dental & Vision

Retirement/Pension

7.7% 6.2% 1.3% 4.4%

0.2% 2.3% 2.5% 0.0% 3.3%

Worksite/Voluntary/Supplement

4.2% 0.5%

Long-Term Care

Employee Benefits TPA

16.0% 14.5%

2012 Best Practices Study

All Other

12.0%

**Excludes Group Medical

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

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