The demand has exceeded supply, with many buyers asking Radar Results about risk insurance client registers and businesses. Australia’s largest buyer agent for financial services, Radar Results, is looking for any financial planner or life insurance agent looking to sell; and looking at doing so right now. The price multiple on risk insurance clients is […]
Buying financial planning businesses or accounting practices in regional areas is becoming a significant issue with many of our buyers. We have about 200 active buyers in Australia, many wanting sellers in the capital cities. They used to look at regional areas for acquisitions, but since the pandemic, it’s almost impossible to employ staff to […]
BASED ON REVENUE TYPE AND AGE Revenue Type and Age Recurring Revenue Multiple Investment and super clients (aged 80 yrs+) 0.8x to 1.0x Investment and super clients (aged 65 -79 yrs) 1.7x to 2.3x Investment and super clients (aged up to 64 yrs) 2.2x to 2.8x Risk clients (under 55 yrs) 2.2x to 2.7x Risk […]
The main impact to the value of financial planning practices is from the Royal Commission Report released in Feb 2019 and the additional red tape that followed the recommendations. The banning of grandfathered trail commissions from Jan 2021 has had an immediate impact with as much as 25% of the recurring revenue from some practices […]
Radar Results Price Guide to September 2019: – Revenue Type Recurring Revenue Multiple Investment and super clients (aged 80 yrs+) 1.0x to 1.2x Investment and super clients (aged 65 -79 yrs) 1.8x to 2.3x Investment and super clients (aged up to 64 yrs) 2.3x to 2.8x Risk clients (under 55 yrs) 2.3x to 2.8x Risk […]
Revenue Type Recurring Revenue Multiple Investment and super clients (aged 80+ years) Fee for service 1.0x to 1.2x Investment and super clients (aged 65 -79 years) Fee for service 1.8x to 2.5x Investment and super clients (aged up to 64 years) Fee for service 2.5x to 2.8x Risk clients (aged under 55 years) 2.5x to […]
Grandfathered trail commission clients (Down another 33%) Radar Results (Radar) had seen recent sale transactions of grandfathered trail commission clients trade between 1.5x and 2.0x the annual trail amount, but now that the Royal Commission has recommended trails cease on 1 Jan 2021, Radar Results believe the multiple has now fallen further. These books are […]
