Radar Results has seen a decrease in requests for valuations on financial planning practices; however, it’s interesting to note an increase in valuations for divorce and property settlements. Before the GFC, most valuations were for finance applications, or for the lender to check on the equity-to-loan ratio. These days, very few are for this reason.
Whilst the total number of requests for a valuation has fallen to approximately 10 per month, down 31% on 2010, Radar Results has seen a surge in the number of valuations required for divorce. Another change is the higher percentage of valuations requested to change the shareholding between partners in a financial planning business. Younger partners wish to buy a larger stake in their planning business, and require a valuation by an independent, registered valuer.
A concern within the financial planning industry is that there appear to be valuations prepared by unqualified and unregistered valuers, leading to incorrect pricing, which can, in turn, lead to problems if there is a dispute; and, therefore, a court hearing.
Another concern is that not all valuers are prepared to appear in court or, for that matter, even travel. A valuer providing a valuation for a divorce settlement is often required to appear in the Family Court to answer questions.
Loan books in big demand
Surprisingly, a number of financial planners are now looking to acquire loan books so that they can add additional revenue to their businesses. Cross-selling opportunities are also enhanced. The banks had moved to take much of the loan work back into their branches, which put a squeeze on trails and upfront revenue. The last 2 years had seen the multiple paid for loan book recurring revenues reduce to between 1 and 1.5 times. More recently, and on the back of demand from financial planners, the multiple has increased. If you would like to know more about how much a planner or mortgage writer would currently pay for your book of clients, please email me at firstname.lastname@example.org.
RadarBC – Business coaching for financial planners
In 1995 I hired a business coach and then went on a 2 day business-coaching workshop. From there a new client value proposition was established, and within 6 months my revenue had doubled. I continued to pay my business coach a retainer for the next 7 years. I changed business coaches in 2004, appointing Radar’s current principal coach, Michael Wynter. I’ve been with Michael for 7 years and have since formed Radar Business Coaching (RadarBC), engaging 5 more business coaches.
The main problem I identified with business coaching is that the coach will provide you with advice, but you’re the one that needs to implement that advice. RadarBC provides a Strategy Coach and an Implementation Coach, solving the problem known as FTI, or Failure to Implement. To learn more about RadarBC go to our website www.radarbc.com.au
Radar wins marketing award 2 years running
Radar is proud to receive the 2010 All Star Award for the second year running, chosen out of over 400,000 organisations.
Businesses work hard to build strong relationships with their customers through marketing and some, such a Radar, truly excel in this effort,” said Gail Goodman, CEO, Constant Contact. “We’re proud of the role we play in helping Radar be successful and we look forward to continuing to assist them with their marketing efforts.”