This brief captures the 2024 Best Practices Study profile for the $10M–$25M tier — a regional institution with deep commercial and benefits practices. Read against the 2022 profile for the trajectory. Every figure here is a segment benchmark; the companion 2024 BPS tier reference explains how the tiers compare, and the year's narrative is the 2024 context.
§ 01 · ProfitabilityProfitability & the Rule of 20.
A 25.8% Pro Forma EBITDA on a 59.4% compensation load, with a Rule of 20 of 22.4 — strong economics for the scale, with reported pre-tax (20.9%) sitting well below the normalized figure.
| Metric | Average | Top quartile |
|---|---|---|
| Pro Forma EBITDA margin | 25.8% | 33.1% |
| Pre-tax profit | 20.9% | 26.4% |
| Rule of 20 score | 22.4 | 26.7 |
| Total Pro Forma compensation | 59.4% | — |
§ 02 · Revenue mixRevenue mix.
Commercial lines dominate at 55.9%, personal fall to 15.2%, and group medical rises to a substantial 11.2% — the diversified, benefits-inclusive book of a full-service regional agency.
| Line | % of revenue |
|---|---|
| Commercial lines | 55.9% |
| Personal lines | 15.2% |
| Group medical | 11.2% |
| Contingent / bonus | 7.8% |
| All other group | 4.1% |
Revenue mix, at a glance.
Commercial-dominant, with a substantial benefits practice. Bar widths are exact percentages of revenue.
§ 03 · Growth & concentrationGrowth & account concentration.
Strong average organic growth (9.4%) and low account concentration (13.3%) — a large, diversified book growing at scale.
| Metric | Average | Top quartile |
|---|---|---|
| Net-revenue organic growth | 9.4% | 13.1% |
| Net-revenue total growth | 9.5% | 13.4% |
| Top-10 accounts (% of commissions) | 13.3% | — |
§ 04 · ProductivityProductivity per person.
About 68.7 staff, with revenue-per-employee at $233,451 — high productivity from a deep, specialized service organization.
| Metric | Average | Top quartile |
|---|---|---|
| Revenue per employee | $233,451 | $271,995 |
| Spread per employee | $95,209 | $108,781 |
| Total staff (average) | 68.7 | — |
§ 05 · Producer pipeline & stabilityThe pipeline read.
A deep balance sheet — tangible net worth at 20.5% of revenue, up from 2022 — on a 1.62 current ratio. The producer success rate of 49.9% reflects scale hiring, with a 49.4 producer age keeping perpetuation a board-level question.
| Metric | Average | Top quartile |
|---|---|---|
| Weighted-average producer age | 49.4 | — |
| 5-year producer success rate | 49.9% | 74.4% |
| NUPP (% of net revenue) | 1.3% | 1.7% |
| Current ratio | 1.62 | 2.20 |
| Tangible net worth (% of revenue) | 20.5% | 30.7% |
- Diversified, benefits-inclusive. CL at 55.9% with a substantial 11.2% group-medical line.
- High productivity. Revenue per employee of $233,451 from a deep service organization.
- Strong organic growth. 9.4% average on a large book.
- Deep balance sheet. Tangible net worth at 20.5% of revenue.
- Low concentration. Top-10 accounts at 13.3% of commissions.
- Normalization matters. Reported pre-tax (20.9%) sits well below the 25.8% Pro Forma EBITDA.
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 (20.9%) understates the economics, because the Pro Forma EBITDA (25.8%) is the number a buyer underwrites once management compensation is normalized. The figures that move a multiple are the Rule of 20 (22.4), organic growth (9.4%), 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 2024 edition (calendar 2023 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.