An adviser who has been in the industry for many years plans to cut back on his service work with a select group of clients. The carve out is composed of a national database of Superannuation clients with risk attached to them
Income is made up of:
- Fee for service $166,655
- Insurance renewal commissions $54,573
- Total annual Income is $221,228
Fee payments by clients are through the Platform Hub 24.
There are 64 clients in the superannuation plans with 71 risk clients under a platform with Hub24.
The make-up of the client base is PAYG, Professionals, Retirees, Accumulators, Mums & Dads, Tradies & Farmers.
The clients’ ages range from 22 to 74.
The clients have been serviced as “on demand” when or if they require help.
The main insurance product providers are:
| TAL | AIA | Zurich |
| Acend | Metlife | Clearview |
FUM is $15 million.
The business is located mainly in QLD and NSW with a smattering of SA, VIC and WA clients.
Potential
The following are the opportunities for reviews:
| Cross generational referrals | Super amalgamation opportunities | |
| Shares | Property | Mortgage Broking |
| Finance Broking | General Insurance | Finance/Leasing |
| Estate Planning | Aged Care | Nomination of benificiaries |
The vendors are willing to talk attractive terms for the purchase with an upfront investment, reasonable handover protocols and standard run off provisions for the right cultural fit.
The vendor is looking for 3.15 times annual income with 80% upfront and the balance within 2 years.
Preference will be given to acquirers with approved funding in place rather than a contract that is “subject to finance” or any vendor finance.
All negotiations are subject to a signed NDA with the vendor prior to the release of any data.
This is an ideal opportunity for someone looking to acquire a ready-made business generating substantial amounts of income from a loyal client base.
For more information and a prompt introduction please call Jim Prigg on 0408 520 453 or jim@knowledgemaster.com.au.