2021 Best Practices Study

Cross Category Comparison

Detailed Data for All Revenue Categories

Financial Stability

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Current Ratio

1.40:1 2.22:1

2.55:1 2.70:1

2.36:1 2.71:1 14.7% 42.5% 15.6% 12.4% 23.2% 72.2%

2.25:1 2.79:1 15.9% 42.0% 10.1% 15.4% 29.9% 70.1%

1.83:1 2.32:1 15.1% 50.5%

1.59:1 2.11:1

Trust Ratio

Tangible Net Worth (% of Net Rev) Receivables-to-Payables Ratio Accounts Receivables: % Receivables Aged 61-90 Days

4.1%

6.1%

8.7%

52.2%

43.7%

55.4%

16.9% 11.5% 16.8% 77.9%

9.9%

2.0%

10.0%

% Receivables Aged Past 90 Days

27.6%

19.7%

5.6%

% of P&C Revenues - Agency Bi l led % of P&C Revenues - Di rect Bi l led

22.3% 72.9%

36.5% 61.1%

53.4% 46.6%

AGENCIES WITH REVENUES OF:

TOP QUARTILE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Current Ratio

2.18:1 3.32:1 22.6%

4.56:1 4.54:1 19.7% -17.1%

4.21:1 4.40:1 33.3%

3.64:1 4.32:1 34.3%

2.81:1 3.72:1 27.9%

2.51:1 3.53:1 26.7% 26.8%

Trust Ratio

Tangible Net Worth (% of Net Rev) Receivables-to-Payables Ratio Accounts Receivables: % Receivables Aged 61-90 Days

9.0%

4.3%

6.9%

4.2%

3.9%

-15.4%

-2.0% -6.9%

-0.9% -1.3%

-13.9%

-2.3% -2.0%

% Receivables Aged Past 90 Days

10.1%

-2.8%

-5.9%

AGENCIES WITH REVENUES OF:

AVERAGE

<$1.25M $1.25-$2.5M $2.5-$5M $5-$10M $10-$25M >$25M

Debt Metrics: % of Al l Loans by Source Type: Communi ty Bank

71.4%

40.0% 10.0%

50.9% 18.9%

58.7%

48.5%

34.3%

Industry Lender

7.1%

6.3% 7.9% 7.9%

4.1% 0.0%

1.0% 5.7%

Private Equi ty Lender

14.3%

6.7%

1.9%

Shareholder

0.0% 7.1%

13.3% 30.0%

11.3% 17.0%

28.9% 18.6%

26.7% 32.4%

Other

19.0%

% of Fi rms that have Identi fied Debt

42.1%

69.6%

50.0%

48.8%

59.5%

62.5%

Of those fi rms that have debt: Average Total Debt

$224,510

$694,954

$803,129 $2,372,589 $3,063,923 $16,209,649

Total Leverage 1

1.3x 5.1%

0.9x 4.5%

0.9x 4.3%

1.3x 4.4%

0.8x 4.5%

1.2x 3.7%

Average Effective Interest Rate Average Term (Years to Maturi ty)

4.3

4.6

4.4

6.1

5.5

5.9

1 Total Debt / Pro Forma EBITDA

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