2012 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

3.0%

*

*

*Insufficient Data

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

5.0%

4.7%

5.6%

High Low

21.5%

1.1%

10 Largest Accounts

18.2% 37.6%

14.6%

21.1%

High Low

2.9%

Average

+25% Profit

+25% Growth

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

27.2% 20.8% 28.5%

15.0% 60.0% 25.0%

44.0% 14.0% 26.0%

Disability

Dental & Vision

Retirement/Pension

4.8%

0.0% 0.0% 0.0% 0.0% 0.0%

0.0%

Worksite/Voluntary/Supplement

12.3%

10.0%

Long-Term Care

1.7% 1.2% 3.6%

3.5% 0.0% 2.5%

Employee Benefits TPA

2012 Best Practices Study

All Other

**Excludes Group Medical

Agencies with Revenues Between $2,500,000 and $5,000,000

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