FP/Risk/Loan Broking Businesses Wanted (WA)

A successful WA FP/Mortgage broker business is looking to acquire a book of business in the Greater Perth Metro Area.

A merger with another FP Business/Finance/Mortgage Broking would be contemplated with a try before you buy methodology to ensure a cultural fit with an equal business share arrangement. This opportunity is about scaling up with a view to sharing resources, and have a trusted person take the reins that has a vested financial interest.

This vendor is highly experienced with extra capacity to service and maintain FP, risk, and mortgage broking clients, with a stable infrastructure and ample admin support to cater for more clients.

Income would be made up of:

  • Fee for service $50K – $150k
  • Insurance renewal commissions $50K – $150K
  • Annual consultative work $50K – $150K
  • Loan broking upfront $50K – $150K
  • Loan broking trail $50K – $150K
  • Total annual Income up to $250,000 low/$400,000 high

Methods of fee payments by clients:

  • Fee for service
  • Annual advice agreements
  • Insurance renewals
  • Lending upfront
  • Lending trail

Buyer would like to acquire from 50 clients to 250 clients depending upon type of client and if active or renewal or fee for service.

Outline of the make-up of the client base.

All clients would be looked at however with a focus on PAYG, Professionals, FIFOs, tradespeople, Accumulators, Mums & Dads.

Percentages of the client mix the acquirer prefers:

Under 40 25%
40-55 40%
55-60 25%
Over 60 10%

Main insurance product providers the acquirer is interested in would be a focus on the following:

Resolution Life TAL AIA Onepath Zurich
MLC Asteron but will look at others

The records storage system the acquirer prefers are; DropBox or Adviserlogic, additionally if the fit is right a change of loan aggregator would also be entertained.

Platforms the buyer prefers are MyNorth, BT Panorama, CFS, Hub24, Netwealth, but open to others.

FUM required is from $15 – 45 million.

The multiple of the annual income the buyer would be prepared to consider is up to 2.5 – 3 times for the right cultural fit with agreed term/however a merger/partnership is the preferred option for the shorter term.

The buyer has a preference for a merger with an eventual buyout or alternatively a partnership/merger with a like-minded and similar aged individual.

Buyer would consider a 2 – 3 years caretaker/BDM role for a vendor if a purchase is amicable, as long as he/she is working as a business partner. Would look at keeping existing adviser on for at least the payment terms, but longer if the cultural fit is working.

Synergy with a younger or middle aged driven entrepreneurial financial services professional is the preference. They would also look at a business merger with a mortgage broker and or an accountant if the right cultural fit is evident.

Ambition is to look at scaling a business up to create a larger more saleable entity in the future is at the forefront of this overall strategy.

Are there any like-minded financial services professionals out there?

The buyer is willing to talk attractive terms for the purchase with an upfront investment, reasonable handover protocols and standard run off provisions.

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