The acquirer has immediate access to finance for a business with $500k to $2.5m of RR.
The ‘unicorn’ of businesses to buy would fit the following criteria:
- Average fee >$5k per client
- Majority of the revenue is fee based, not insurance (although some insurance is OK)
- Retiring adviser (ie not a career changer or partial sell down)
- Good staff that want to stay with the business (eg client services and associates)
- Majority on a single platform (CFS, Hub24 are our mostly commonly used but we’re flexible here)
- Not too many direct shares, unless in managed accounts or MDAs
- Capital city location, (again, flexible here, but this would be an advantage)
- Majority of clients in close proximity to office
- Client profiles:
- Business owners
- 50-60 years old pre retirees
- The adviser is not focused on “I can outperform the market”, but rather more of a hand holding relationship and strategy focus.
Top multiples offered with generous hand over provisions for the right cultural fit.
For more information and a prompt introduction please call Jim Prigg on 0408 520 453 or jim@knowledgemaster.com.au.