An adviser who has been in the industry for 19 years, plans to sell due to an ATO debt from her divorce and recurring health issues.
The business was restarted a year ago. Most revenue is calculated on what is in place together with what has been written as upfront this previous year. Product reports can be updated to reflect all In force policies.
The business is mainly composed of Accumulation Super, Insurance and TTR clients.
Income is made up of:
- Fee for service $30,000
- Insurance renewal commissions $29,000
- Total annual Income is $ $59,000
- Plus non-recurring annual consultative work for clients
These are in annual fee for service payments from the products. There is still another 5 or so new client’s currently being worked on which will form more of this FFS base.
There are 22 clients in the business. Roughly 5% of the clients are in insurance only advice. They are located Melbourne, Gold Coast and NSW.
The make-up of the client base is PAYG, Professionals, Accumulators, Mums & Dads and Tradies.
The clients’ age brackets are:
Under 40 5% 40-55 30%
55-60 60% Over 60 5%
The main insurance product providers are:
Neos, TAL, AIA, Onepath, Zurich and Asteron
FUM is $2,800,000.
Potential
The following are the opportunities for reviews and referrals
- Estate preservation (through insurance)
- Superannuation consolidation and TTR planning
- Pre-retirement planning
- Next generation advice
The vendor has access to a vibrant BNI network with referral partners in lawyers and accountants. As well she is involved in a women’s mentoring network where HNW clients are available.
The vendor is looking for a multiple of 3.0 times recurring income with 80% up front with the balance in 12 months. Extra consideration would be given for a 6-month hand over period.
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 income from a loyal client base with excellent referral systems.
For more information, please contact Jim Prigg on 0408 520 453 or drop him a line jim@knowledgemaster.com.au