2007 Best Practices Study
Agencies with Revenues between $2,500,000 and $5,000,000
 
   
 

Rev. % By Source  |  Services/Other Products Provided/Aquisition Info  |  Rev. Growth By Source:  P&C  L&H  Total  | Future Rev. Growth Strategies

Revenues
Services/Other Products Provided (% of Agencies Providing)
  Average +25% Profit +25% Growth
Loss Control/Engineering 27.3% 20.0% 28.6%
Worker's Comp Claims Adjusting/Admin (TPA) 4.5% 0.0% 0.0%
Group Health Ins Claims Adjusting/Admin (TPA) 4.5% 0.0% 0.0%
Self Insurance Programs 22.7% 0.0% 0.0%
Risk Management Consulting 50.0% 40.0% 42.9%
Premium Financing (in-house vs. 3rd party) 45.5% 40.0% 14.3%
Pension/Profit Sharing/401K 40.9% 40.0% 28.6%
Human Resource Consulting 9.1% 0.0% 0.0%
Employee Leasing Products & Services (PEOs) 13.6% 0.0% 28.6%
Investment Products (Securities, Stocks) 18.2% 20.0% 14.3%
Other* 22.7% 0.0% 28.6%
Acquired Revenues
  % of Agencies Acquiring Average Commissions Acquired % of
Net Revenues
Acquisitions Made in Last 12 Months 3.3% $462,070 10.8%

 

What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Average $250,000
High $400,000
Low $100,000
Multiples of Revenue Paid
Average 1.70x
High 2.00x
Low 1.40x

 

 
     
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