Recent Results

Over recent months there has been a decided improvement in the multiples and results for business sales Knowledgemaster has observed.

These businesses tend to have the following attributes:

  • Excellent communications and close contact with clients
  • No hassles with ASIC
  • Modern CRM systems
  • Solid referral systems and partners
  • Potential for other FP services such as property, shares, cross generational referrals, SMSF’s etc
  • A well-constructed marketing document for distribution in the most appropriate forums
  • The capability to impress on potential acquirers the positive aspects of the business
  • The vendor sets the conditions of negotiation, not the market, institutional lenders or the acquirer

Here are some recent results that bear consideration.

  • 2.8 times annual income. 90% up front. Risk book
  • 2.5 times annual income. 80% up front. Balance over 2 years. Older client base of Financial Planning/Risk. AFSL sold separately for $70K
  • 3.15 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
  • 2.85 times annual income. Mostly risk. General Advice. 83% up front. Balance over 2 years paid monthly
  • 3.15 times RR. 80% Financial planning. 20% risk. 90% up front. Balance at end of 12 months. FUM $32M
  • 3.4 times RR. Pure FP. No risk. 90% up front balance in 12 months

If you would like to discover how to effectively market your FP/Risk business, I would be delighted to help you. Simply call Jim Prigg on 0408 520 453 or drop me a quick email to won’t you? Look forward to hearing from you soon.