A group in (TAS) has an investment database they are looking to off load. 95% approx. of the book is resident in TAS. The remaining clients are spread across NSW, WA, QLD, VIC and SA.
The age ranges of the clients are mostly mature (55+) with Super and Investments (no RISK only clients).
The Total FUM across all platforms is almost $19M, with 482 clients.
The average capital per client in the products is approximately $40K.
Product providers include:
- Resolution Life (legacy ex–Legal & General, Prudential, Colonial)
- OnePath
- Colonial First State (CFS)
- Macquarie Wrap
- Voyage / FSP (Macquarie-badged wrap platforms)
There are no group insurance products, sickness or accident or trauma products.
The ownership by the clients is almost entirely in single ownership.
The make-up of the client base is predominantly Mums & Dads.
There are no support or managerial staff servicing the database.
All records are kept digitally.
Client files exist where historically available, and a full data dump can be provided.
Some legacy clients have limited or no historical files retained, but full platform data will be supplied.
Potential
The potential for the buyer is to speak to a range of loyal clients that have been part of the business for some years. Some clients request service when required. The clients have an investment which they setup with the group so the whole of wallet opportunity is enormous because they have been loyal. There has been high conversion rate from clients attending an appointment.
Potential new business could be generated from:
- Financial planning
- Cross generational referrals
- Super amalgamation opportunities
- Shares
- Mortgage Broking
- General Insurance
- Accounting
- Aged Care
- SMSF
- Estate management and equalisation
- Property management
At present there is no direct income generated from the rich client base.
The value of the database will be determined by the following:
- A capital amount of $15 per policy plus 0.25% of the FUM
- 482 X $15 = $7,230 plus 18,994,556 X 0 25% = $47,486 for a total of $54,716 paid in one lump sum
The vendor is looking for a WIWO agreement and a total upfront payment to dispose of the database as soon as possible.
Preference will be given to acquirers with approved funding in place rather than a contract that is “subject to finance”.
All negotiations are subject to a signed NDA with the vendor.
For more information and a prompt introduction please call Jim Prigg on 0408 520 453 or jim@knowledgemaster.com.au.