Are you are interested in learning about selling your FP business?

There are some very good reasons to consider selling a FP business now.

a) Demand exceeds supply. There are more buyers than sellers. This means that acquirers have limited stock to choose from, hence the competition to acquire is very keen.

b) Multiples on annual turnover appear to have firmed. Because demand exceeds supply, modern businesses with loyal clients are eagerly sought after. Recent multiples we have seen include:

  • 2.8 times annual income. 90% up front. Risk book
  • 2.5 times annual income. 80% up front. Balance over 2 years. Financial Planning/Risk. AFSL sold separately for $70K
  • 2.7 times annual income. 70% up front. Balance over 3 years. Financial Planning/Risk. FUM $10+M
  • 2.8 times annual income. 80% up front. Balance after 12 months FP. $20M+ FUM. AFSL sold separately for $50K

c) Interest to acquire businesses is national. Knowledgemaster has over 300 individuals and organisations looking to acquire nationally.

d) Scalability. Many buyers are looking for bolt-on acquisitions to gain greater efficiencies in manpower, technology and client care capability.

e) Client banking. With lesser advisors there is an opportunity and need to acquire databases for future harvesting of clients and opportunities in the full range of FP jurisdictions.

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