Selling a financial planning business
Selling a financial planning business is a major step - it needs careful thought and consideration.
It's easy to get caught up in the day to day routine, so why not take a couple of minutes and find out what your business may be worth...
No fees, no commissions
We match a seller to one of our buyers. As it is the buyer who engages us, it's the buyer who pays us - so there's no fees paid to Radar Results by the seller.
Information on Sellers is kept extremely confidential and only provided to a Buyer who’s matched by us. We do not advertise, display, circulate or in any way publish the details of a Seller.
Free Information Memorandum - Free Appraisal - Registered Valuation Service
It takes just 4 minutes to complete the free online Appraisal Questionnaire - then you'll know what your business may be worth.
To register your interest in receiving a valuation from a Registered Valuer please complete the Registered Valuation Questionnaire.
If you would like a confidential phone enquiry with a Radar Associate please click here.
Valuation Considerations
Evaluation of five primary indices forms the basis of the valuation process with various lessor factors influencing and impacting on the actual marketable value. A critical factor requiring careful consideration is whether the business will be able to sustain the current revenue levels after it is sold.
The primary valuation indices are:
- Geographical location - whether capital city, CBD, regional or country is a major consideration and can influence a valuation immensely.
- Client age - and critically, whether they are accumulators or predominately retirees.
- Trail revenue - surety of these revenue streams adds weight to the calculated metric.
- FUM - fund size, investment style and portfolio management structure are critical.
- EBIT - profitability is important.
Determining the actual marketable value of a business is not an exact science, with many factors influencing and affecting the valuation to some degree. While up front fees, trail revenues and FUM can guide the valuation process, factors can play havoc with EBIT values.
Therefore a number of lessor factors must also be considered including:
- The number of clients and their average investment amount
- The SOA pricing and fees schedule
- The Dealer Group affiliation
- The fund manager selection and the platforms used
- The wholesale to retail investment mix
- The number of partners and support personnel
- Whether the financial planners will continue to work in the business after sale.