Price Guide

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