1. Old is new again. Risk databases are in demand.
Rather than buy businesses, astute acquirers are looking to buy dormant and unserviced risk books/databases as carve-outs to prospect in. Recent results:
- 174 risk/investment clients, national. $66M of FUM. Sold for $110 per policy plus 0.15% of FUM. 100% WIWO quick sale transaction. Circa $115K
- 500 risk/investment clients, SA based. $50M FUM. Sold for $100 per policy holder plus 0.25% of FUM. 100% WIWO quick transaction. Circa $175K
If you have a dormant or heritage risk database, we have interested, cashed-up buyers looking to acquire. Please let me know what you have, won’t you?
2. Good news for sellers. The value of FP businesses selling has firmed.
Recent results:
- SA FP with some risk. 3.15 times RR 80% up front. Balance within two years
- QLD Risk only. 3.0 times RR. 75% Upfront. Balance in 18 months. Quick sale.
- NSW FP with some risk. 3.15 times RR 70% upfront. Balance in 24 months.
- VIC Carve out of risk portfolio Approx 180K RR at 3.0 times RR. Quick sale.
KM has eager, cashed up buyers all over Australia looking to acquire financial planning practices NOW. Do you know of any potential sellers?
3. KM also has potential acquirers of AFSL’s & ACL’s both locally and overseas.
Top $$’s paid. 100% WIWO transactions. Please let me know of any such opportunities, won’t you?
4. Finally, Any suggestions for content in our Knowledgemaster News, newsletters please?
The best idea will receive a bottle of French champagne with complimentary rewards of red wine for other worthwhile suggestions.
Thank you for your support, suggestions and ideas. I really appreciate them.
Jim Prigg
Email: jim@knowledgemaster.com.au | Mob: 0408 520 453