Sydney based – Modern risk business for sale with unique referral sources

An adviser who has been in the industry for 36 years plans to retire. The business is primarily risk based with excellent referral systems through accountants and other professional firms(102).

  • Insurance renewal commissions $195K
  • Estimated annual Income FY 22/23 $320K.

There are 260 clients in the business many in family groups with some heritage products. The majority of the clients are in their forties and fifties. A large portion of the client base resides in the western suburbs of Sydney.

The make-up of the client base includes: HNW Professionals, Accumulators, PAYG, Mums & Dads, Tradies, Business owners including some doctors and surgeons.

The business is operated by the principal and one support staff.

There are 90 SMSF clients with most of these funds having 2 members being of high net worth with excess capital needing to be deployed in various asset cl;asses.

The main insurance product providers are: TAL, AIA, OnePath & Zurich, MLC and Generation Life

The records storage system is X Plan. Soft copies of file notes as well as hard copies exist.

FUM is $5 million+, mainly with IOOF

Potential

The following are the opportunities for reviews and potential business opportunities:

  • Cross generational referrals
  • Super amalgamation opportunities
  • Shares
  • General Insurance
  • Finance/Leasing
  • Estate preservation and maintenance

The owner has developed a unique referral agreement with accounting firms and legal firms that delivers regular and reliable clients who mostly pay for their insurance through their established SMSF’s.

The vendor is looking for a multiple of 3.0 times on earnings, with 85% paid up front and the balance over 2 years.

The vendor is in the process of a massive increase in new risk business to be lodged, approved and to be paid on in the next few months due to a successful robust referral system.

IMPORTANT

The vendor is prepared to act in the supportive capacity of liaison officer with the accountant/legal referral partners for a reasonable time to build and make the network stronger and refer more business.

During the pandemic business retention has been excellent, supported by a robust interactive newsletter communication support strategy.

This is an ideal opportunity for someone looking to acquire a ready-made business generating substantial amounts of income from a loyal client base with excellent referral systems.

It is ideally suited to someone with the appropriate qualifications to help clients with SMSF’s that include high volumes of insurance covers.

Preference will be given to those who can offer outright purchase rather than “subject to finance” offers. Vendor finance is not available.

For more information contact Jim Prigg on 0408 520 453 or jim@knowledgemaster.com.au.