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
- New owner can lease light and well configured premises with/without furniture. Office is located very close to Martin Place in Sydney.
- 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.