Consulting firm, Radar Results is seeing more sellers of financial practices come to market, particularly larger sized firms. John Birt, Managing Director for Radar Results said “Currently our clients are looking at purchasing 10 planning practices which should sell for at least $5 million. We have found 5 of these practices since December 2009. ” […]
Insurance registers in high demand Life insurance registers continue to be in extreme demand from financial planners who wish to expand their business. These registers, commonly called “books of business,” would include life insurance, trauma or crisis cover policies and income protection. To date the main demand has been from capital city based advisers although […]
If you’re planning to sell your financial planning business you’ll need to be aware of some obvious and not so obvious deal breakers. Besides price and terms being the obvious ones, there are some surprises in store for the unwary seller. If you’re an Authorised Representative of an AFSL and looking to sell, Radar has […]
Radar now provides a professional valuation service by a Registered Valuer who’s on the panel of major banks. Adviser feedback to Radar indicates fees of between $5000 and $7000 are being charged to value a planner’s business and as the value of the firm increases, so does this fee. Radar has a flat fee of […]
The number of financial planners who have approached Radar Results wanting to sell their business has increased by 50% from January 2009. We had 42 practices for sale in January and now have 63 serious sellers. Based on fee revenue and purchase numbers, the last quarter (July to September) was Radar’s best ever result. […]
Every financial planner eventually wants to sell their business but sometimes they wait too long and their estate ends up contacting Radar Results. This is not the best scenario, as it tends to sell for half price. Last year our clients purchased several deceased estates, but it’s not our preferred outcome. Let’s look at […]
Recent Newspaper and Finance Magazine articles suggest that banks have not changed their lending criteria. This is questionable when they are knocking back a lot more loans than previously. This year Radar Results will help around 40 clients with their finance applications to acquire a financial planning business. Matt Taylor, Radar’s Melbourne Manager, feels […]
It’s been an interesting period since Xmas with the value of financial planning (FP) firms still trending down. Any further downturn in the markets could see their values fall further. With more and more planners looking at retiring, there may be an oversupply of planning firms for sale in the next few years. The recession […]
It has been 4 months since my last Newsletter and since then markets have slipped another 20%, or even more. We now have a full year of downturn to measure past recurring revenue and EBIT values. This will help buyers and sellers of FP firms to know what their business is really worth today. You […]
The investment market downturn for the past year has seen the value of financial planning firms reduce by up to 30%. Last year Radar Results provided 180 valuations for the financial planning industry and the impact of reduced recurring revenues and lower profitability on some firms has been dramatic. Practices with either a high level […]
