Business for Sale: Sydney CBD

An opportunity to grow a unique multi-licensed (AFSL/ACL) financial services business that has been re-positioning itself as a family office is available.

The business is primarily in Sydney with Corporate Authorised Representatives (CARs) in Perth. There are 2 full time staff – One is a qualified financial adviser (employee) and the other a highly skilled para-planner.

Revenue

Gross revenue for FY 2024 was $411k which was made up of:

  • Platform: 43%
  • Insurance commissions: 23%
  • Financial Advice: 15%
  • Share Trading Brokerage: 3%
  • Mortgage commission: 6%
  • CAR fees: 8%

Audited accounts are available for previous years and FY 24 soon.

Key metrics as of 30 June 2024:

  • 65 clients
  • FUM $50M
  • FUA $5M
  • Insurance $55M
  • Mortgage portfolio $10M – Aggregator is Finsure

Client Demographic

SMSF HNW/retirees, their children and some aspirationals.

Client age bracket

< 30: 11                     30-40: 20

40-50: 8                     50-65: 29

> 65: 19

48 are aged 50 or less.

Insurance

Insurance is an intricate part of the planning and relationship with these HNW clients.

Insurance providers are:

AIA: 32% BT: 33% TAL: 14% One Path: 14% Other: 7%

Platforms

The main platform providers:

Asgard: 57% BT Panorama: 40% Macquarie: 1% CFS: 1% AMP: 1%

The vendor is slowly moving clients across to BT Panorama from Asgard due to better fee structures and platform features.

Share trading platform

Desk Top Broker

Record storage technologies:

  • Google cloud (and 1st Back up)
  • Back up: 2nd back up NAS, then 3rd Back up hard drive
  • Finyte – mortgage files

Potential Opportunities

The hard yards of starting up and building a brand has been done, the opportunity is to grow to next level through:

  • Increase ongoing fee rates as these are less than the market.
  • Boomer retirement and pre-retirement market
  • Cross sales – mortgage/advice
  • Careful appointment of more CARs
  • Additional mortgage broking
  • Expand AFSL to include managed accounts
  • Expand ACL to become a mortgage manager
  • Increase number of referrals
  • Direct Property

Unique Referral systems/arrangements are with

  • Accountants
  • Solicitors

These trusted and discreet connections will be introduced to the new owner.

Compliance

  • Risk and Compliance Committee meeting records are available
  • Compliance manual
  • Clean ASIC compliance record
  • Registers available
  • Xero

Sale Price

Sale price is 3.5 times RR for this licensed legal entity (plus registered business name) which also includes:

  • AFSL
  • ACL
  • Use of Aspire trademark
  • Web site: www.wealthmakerfinancialservices
  • Social Media pages: FB/Linkedin
  • Unique Business name – (XXX) Financial Services
  • Domain names
  • Phone number (highly desirable)
  • Computer equipment – laptops/desktops/printers

2 full time staff are available – One is a qualified financial adviser and the other a highly skilled para-planner.

Payment Terms

The vendor is willing to talk attractive terms for the purchase with an upfront payment (85%), with the balance over 12 months. Reasonable handover protocols and standard run off provisions are offered. The vendor is willing to continue involvement for up to 2-year period to ensure smooth handover.

The owner has his own and family money invested and many of the clients he has known a long time and feels very responsible to them. Audited accounts are available. Staff are included in the transaction – please note they are paid by a separate management company, and looking after the team is important for business continuity. Offers “subject to finance” not preferred.

Infrastructure

  1. New owner can lease light and well configured premises with/without furniture. Office is located very close to Martin Place in Sydney.
  2. As technology is in the cloud the ability to work remotely is a favourable option

This is an ideal opportunity for someone looking to acquire a ready-made business with opportunities to grow into the family office space. “No tyre kickers.”

For more information and a prompt introduction please call Jim Prigg on 0408 520 453 or jim@knowledgemaster.com.au.