Radar Results Price Guide to June 2023

Radar Results Price Guide to June 2023

Revenue Type and Client’s Age
Investment and super clients (aged 80 yrs+) 0.8x to 1.0x
Investment and super clients (aged 65 -79 yrs) 1.9x – 2.5x
Previously 1.7x to 2.3x
Investment and super clients (aged up to 64 yrs) 2.3x to 3.0x
Previously 2.2x to 2.8x
Risk clients (under 55 yrs) 2.3 to 3.0
Previously 2.2x to 2.7x
Risk clients (aged 55 – 60 yrs) 2.1x – 2.5x
Previously 2.0x to 2.3x
Risk clients (aged 61 yrs+) 1.0x to 1.5x
Corporate super plans – commission switched off Negotiable
Mortgage clients – home loan trails 2.5x – 3.5x
Previously 2.25x to 3.25x
Accounting fees – business clients 0.95x – 1.30x
Previously 0.90x to 1.25x
Accounting fees – individual returns 0.5x to 0.9x
SMSF administration fees 1.5x – 2.0x

The multiples above can vary depending on the terms the vendor offers to the purchaser when selling; the location of the vendor’s clients; the client’s ages; Funds Under Management or Administration, and the investment products recommended. The $ account balances of each client are essential with the fee-for-service charge — clients with higher $ account balances, paying higher fees, naturally command the higher multiples.
Multiples paid for risk books or insurance-revenue-based practices will depend on the client’s occupation, age, premium size, policy type, and geographic location of the clients.

BASED ON FEE SIZE PER CLIENT

Revenue Type Recurring Revenue Multiple
Investment and super clients

Fee per client of less than $2,000 per annum

Fee per client between $2,000 to $4,000 per annum

Fee per client above $4,000 per annum

1.0x – 2.0x

2.2x to 2.5x

2.7x – 3.5x
Previously 2.6x – 3.3x

Risk insurance clients

Fee per client of less than $2,000 per annum

Fee per client $2,000 to $4,000 per annum

Fee per client above $4,000 per annum

1.0x – 2.2x

2.2x to 2.5x

2.6x to 3.5x
Previously 2.6x to 3.3x

Accounting fees – business clients

Fee per client up to $4,000 per annum

Fee per client above $4,000 per annum

1.1x to 1.2x

1.25x to 1.35x

Accounting fees – individual returns 0.5x to 0.9x

The multiples above can vary depending on the terms the vendor offers to the purchaser when selling, the location of the vendor’s clients, the client’s ages, and the investment products recommended. The account balances of each client are essential with the fee-for-service charge— The most requested clients are those paying fees between $3,000 to $6,000 per annum with reasonably high $ account balances. These clients, therefore, command the higher multiple. Multiples paid for risk books or insurance-revenue-based practices will depend on the client’s occupation, age, premium size, policy type, and geographic location of the clients.

The tables above show the multiples based on two different methods of valuing a client base. Most client bases are now valued using a combination of both methods.

A market value can be determined depending on the type of AFSL and its authorisations. An AFSL can sell for a price based on what it’s allowed to do. Below is a summary of what a buyer may be expected to pay for an AFSL.

Type of AFSL Authorisations Market value
Vanilla or basic Financial advice retail, superannuation, risk insurance, negative gearing $20,000
Managed discretionary trust MDA Plus the above $40,000
Derivatives and Options plus the above Plus the above $80,000 to $100,000
Forex trading Plus the above $500,000 plus