An adviser who has been in the industry for 12 years plans to take another path in the future. Their tightly held business operates in North Queensland.
The income of the practice is made up of:
- Insurance renewal commissions $200,000
- Other commercial services $100,000
- Total annual Income of the business is $300,000.
This is a general advice Risk business with no fees generally charged to clients.
There is no FUM.
There are approx. 350 clients in the business. Approx. 95% of the clients are in the Cairns, Tablelands, North Queensland area. The remainder are Australia wide.
The make-up of the client base is; tradies, mining, professionals, rural businesses, small family business, mums & dads, farmers and SMSF’s.
The clients’ age brackets are:
| 24-33 | 55 | 15.54% |
| 34-43 | 136 | 38.42% |
| 44-53 | 101 | 28.53% |
| 54-63 | 53 | 14.97% |
| 64-73 | 9 | 2.54% |
The business has one full-time administration lady. She generally works from home. She has over 30 year’s experience in the industry. She manages and operates all administration, claims support, underwriting follow-ups and UHG requests, She manages everything for the day to day operations including client calls if required.
The main insurance product providers are:
TAL, Clearview, AMP, AIA, Zurich, Onepath, Neos, MLC, Metlife,
The records storage system is hard cover files .ACT!. with in the cloud and backup with hard drive backup every 15minutes as well as Dropbox for the dealer groups records. Omnium research tool is in place.
Potential
The following are the opportunities for reviews: The age of the clients is a huge asset, and the majority are from referrals and word of mouth over the vendor’s career.
Most clients are extremely loyal due to the “old fashioned” service the vendor provides and the efficiency in which they provide it.
From reviews to claims the vendor is there for them every step of the way, holding their hand.
As this is a general advice model, it has not been “mined” for any other opportunity whatsoever. E.g. FP: Property, SMSF, shares, finance brokering, General Insurance, accounting, etc.
The vendor has not referred clients to outside planners, brokers or other professionals, so there is an attractive opportunity there for the right person.
There are several white-collar professionals, who are clients and great referrers from their own businesses e.g.: accountants, mining recruitment agencies, mortgage brokers etc.
The majority are small businesses and families with many in the age bracket for growth and investment plus opportunities for:
Cross generational referrals Super amalgamation opportunities
Shares Property Mortgage Broking
Finance Broking General Insurance Finance/Leasing
Accounting Aged Care SMSF Estate management
Due to the friendships with these referrers, they are happy that their mutual client is in good hands. The vendor does provide gift cards as a way of showing appreciation due to the business they provide them.
The vendor is looking for a multiple of up to 3.15 times RR for the right cultural fit with 100% up front preferred.
The vendor is willing to stay on as a BDM for 12 months and referral host for new business on a shared income basis for new income they introduce.
Preference will be given to acquirers with approved funding in place rather than a contract that is subject to finance. Vendor finance is not an option.
If a purchaser accepts the percentage and amount, the vendor is willing to pay the administration and management lady 50% of her income for the first 12 months if she is hired by purchaser.
This will help bed down the business and make the transition a smoother one for purchaser and clients. It takes away some of the risk for a purchaser. She is an absolute asset and runs the day-to-day operations by herself.
For more information and a prompt introduction please call Jim Prigg on 0408 520 453 or jim@knowledgemaster.com.au.