This brief captures the 2022 Best Practices Study profile for the $10M–$25M tier — a regional institution with deep commercial and benefits practices and a management layer of its own. Every figure here is a segment benchmark; the companion 2022 BPS tier reference explains how the tiers compare, and the year's strategic story is the 2022 context.
§ 01 · ProfitabilityProfitability & the Rule of 20.
Reported margin compresses here — a 24.7% Pro Forma EBITDA on a heavier 61.0% compensation load, as the agency carries a real management and specialty-staff layer. A Rule of 20 of 22.3 still clears the threshold, and the highest tangible net worth of any band signals balance-sheet depth.
| Metric | Average | Top quartile |
|---|---|---|
| Pro Forma EBITDA margin | 24.7% | 37.2% |
| Pre-tax profit | 18.7% | 31.9% |
| Rule of 20 score | 22.3 | 32.6 |
| Total Pro Forma compensation | 61.0% | — |
§ 02 · Revenue mixRevenue mix.
Commercial lines dominate at 55.5%, personal lines fall to 16.3%, and group medical rises to a meaningful 11.0% — the diversified, benefits-inclusive book of a full-service regional agency.
| Line | % of revenue |
|---|---|
| Commercial lines | 55.5% |
| Personal lines | 16.3% |
| Group medical | 11.0% |
| Contingent / bonus | 8.1% |
| Individual life & health | 1.0% |
Revenue mix, at a glance.
Commercial-dominant, with a substantial benefits practice. Bar widths are exact percentages of revenue.
§ 03 · Growth & concentrationGrowth & account concentration.
Among the strongest average organic growth of the bands (9.7%), and low account concentration (13.9%) — a large, diversified book growing at scale.
| Metric | Average | Top quartile |
|---|---|---|
| Net-revenue organic growth | 9.7% | 22.3% |
| Net-revenue total growth | 9.9% | 23.0% |
| Top-10 accounts (% of commissions) | 13.9% | — |
§ 04 · ProductivityProductivity per person.
About 76.8 staff, with revenue-per-employee at $215,103 — high productivity from a deep, specialized service organization.
| Metric | Average | Top quartile |
|---|---|---|
| Revenue per employee | $215,103 | $280,870 |
| Spread per employee | $84,289 | $121,068 |
| Total staff (average) | 76.8 | — |
§ 05 · Producer pipeline & stabilityThe pipeline read.
The highest tangible net worth of any band (15.1% of revenue) anchors a deep balance sheet. The producer success rate of 53.8% reflects scale hiring, and a 48.4 weighted-average producer age keeps perpetuation a board-level question.
| Metric | Average | Top quartile |
|---|---|---|
| Weighted-average producer age | 48.4 | — |
| 5-year producer success rate | 53.8% | 84.5% |
| NUPP (% of net revenue) | 1.2% | 2.8% |
| Current ratio | 1.83 | 3.02 |
| Tangible net worth (% of revenue) | 15.1% | 31.1% |
- Commercial-dominant, benefits-inclusive. CL at 55.5% with group medical a substantial 11.0%.
- Margin compresses. A 24.7% Pro Forma EBITDA on a 61.0% compensation load — the cost of a real management layer.
- Strong organic growth. 9.7% average, among the highest of the bands.
- Deepest balance sheet by net worth. Tangible net worth at 15.1% of revenue — the highest of any tier.
- Diversified book. Top-10 accounts at 13.9% of commissions.
- Scale hiring, lower validation. A 53.8% five-year producer success rate.
The benchmark is the baseline, not the price.
Best Practices benchmarks don't value an agency — they're the operating baseline a valuation is built on. At this scale, the read shifts: reported pre-tax profit (18.7%) understates the economics, because the Pro Forma EBITDA (24.7%) is the number a buyer underwrites once management compensation is normalized. The figures that move a multiple are the Rule of 20 (22.3), organic growth (9.7%), and book diversification.
The largest single normalization in this band is executive and owner compensation — the gap between a full management team's reported pay and market-rate replacement is the core of the Pro Forma bridge. The companion financial & transactional mechanics reference walks it.
What BPS measures. The Best Practices Study tracks the operating and financial results of top-performing agencies nominated and designated through the study, segmented by revenue tier. This brief reflects the $10M–$25M band in the 2022 edition (calendar 2021 results).
Percentages of net revenue. Expense, compensation, and revenue-mix lines are expressed as a percentage of net revenue unless a dollar figure is shown.
Average and top quartile. The average is the segment standard; the top quartile is the aspirational stretch the study reports alongside it.
Frequency. The study publishes annually. Milly Books refreshes this brief with each new edition.