2012 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

14.3%

$217,919

3.1%

*Insufficient Data

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$206,057

Average

1.4x

High

$450,000

High

2.0x

Low

$51,596

Low

1.0x

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

4.4%

5.6%

5.8%

High Low

14.9%

1.0%

10 Largest Accounts

14.9% 41.2%

16.5%

20.8%

High Low

2.0%

Average

+25% Profit

+25% Growth

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

23.0% 15.0% 35.6%

30.6% 17.8% 32.5%

20.4% 18.1% 35.4%

Disability

Dental & Vision

Retirement/Pension

3.7% 5.2% 4.1% 5.3% 8.0%

7.3% 1.0% 1.7% 0.6% 8.5%

8.8% 4.5% 2.6% 1.1% 9.0%

Worksite/Voluntary/Supplement

Long-Term Care

Employee Benefits TPA

2012 Best Practices Study

All Other

**Excludes Group Medical

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

77