An adviser who has been in the industry for 25 years is looking at their options for the future. These include a joint venture, a management buyout over a specific time or a simple WIWO sale. All will be considered.
The business is composed of FP, risk and SMSF admin and planning.
The total income for this current year is circa $1.85M.
Income is made up of:
- Fee for service $980,000
- Insurance renewal commissions $480,000
- Annual consultative work $550,000
There are 300 fee for service clients and 120 risk only clients in the business with 100 SMSF’s.
70% of the clients are based in QLD with the majority of the balance in NSW and VIC. Along the eastern seaboard.
The make-up of the client base is PAYG, Professionals, Self Employed, Mums & Dads.
The age range of the clients is between 40-70.
The current staffing situation is 5 staff in Australia plus 3 support staff in the Philippines Apart from the principal there is one other fully qualified adviser based in Brisbane.
The main insurance product providers are:
Metlife, Acenda, Zurich and Onepath
The records storage system combine Xplan and Microsoft.
Platforms in use are Hub 24 and BT.
FUM is $103M.
There are no issues with ASIC or any claims form clients.
Potential
The following are the opportunities for reviews:
- Cross generational referrals
- Transition to retirement
- Super amalgamation opportunities
- Mortgage Broking Finance Broking
The business has unique referral agreements with accountants and mortgage brokers.
The vendor is willing to talk attractive terms for the purchase with an upfront investment, reasonable handover protocols and standard run off provisions for the right cultural fit.
As a WIWO acquisition opportunity the vendor is looking for 3.5 times annual turnover with 85% paid upfront and the balance in 12 months.
Preference will be given to acquirers with approved funding in place rather than a contract that is “subject to finance” or any vendor finance.
All negotiations are subject to a signed NDA with the vendor prior to the release of any data.
This is an ideal opportunity for someone looking to acquire a ready-made business generating substantial amounts of income from a loyal client base with referral systems.
For more information and a prompt introduction please call Jim Prigg on 0408 520453 or jim@knowledgemaster.com.au.