Unique Rural Victorian FP Business For Sale

An adviser who has been in the industry for over 25 years is looking to retire. Their tightly held business operates in the North West of Victoria.

The principal advisor is looking to retire with a younger principal advisor prepared to stay on if it suits both parties. However, the culture and values need to align to make the transaction work. This is a regular cash flow business not just a database. The younger principal is responsible for bringing on most new Fee for Service clients.

The vendors have concentrated their advice on the Retiree & SMSF advice space over the last few years with pleasing and consistent results.

The recurring revenue (RR) of the practice is made up of:

  • Fee for Service $253K pa (excludes GST).
  • Insurance renewal commissions $140K pa (excludes GST).
  • Upfront fee’s of around $50K p.a.

There is a comprehensive Opt-In and FDS system in place and the fee structure has shown healthy fee increases over the past few years. Fee payments are a mix of monthly platform and direct monthly deductions.

There are 113 Fee for Service clients, 100 insurance clients & 6 Centrelink clients in the business. SMSF clients amount to 40 and showing strong growth.

Up to date systems and processes with all clients on X-Plan which are updated on a regular basis. The Insurance client book was cleaned up after Grandfathering and all clients are engaged and loyal to the business.

The make-up of the client base is Farmers, SMSFs, Tradies, Pre-Retirees, Retirees, Accumulators, Mum & Dads and Centrelink Clients.

 

Fee for Service clients’ age brackets are:

40-55              23                    55-60              17

60-70              37                    Over 70          36

 

There are exceptional support staff who know all the clients. The Office Manager is also the Paraplanner and compliance officer and is invaluable to the business. The second assistant handles review reports and Centrelink clients. The office manager works 24 Hours per week and the second assistant 16.5 Hours per week.

The business has an excellent compliance history and has never had a client complaint. There is no gearing or margin lending.

The Vendor’s operate the business in well appointed, modern offices in a prominent location in the city environs.

 

The main insurance product providers are:

TAL                 AIA                              MLC                            Asteron

 

FUM is $40M with another $40M+ managed directly through their Share broker.

 

Potential

The following are the opportunities for growth;

  • Aged Care
  • Estate management
  • Insurance Focus

The business has secured reliable new business growth through regular referrals from six local accountants which fits perfectly with their desire to service the SMSF advice and retiree market.

The vendor is looking for a multiple of 3.15 times RR, with 80% upfront with the balance paid after 12 months.

Preference will be given to acquirers with approved funding in place rather than a contract that is subject to finance.

The senior advisor would retire but would be open to working on a part-time basis if required. A smooth handover period of their clients would be expected.

The Client register is being updated. This will include all Category 1,2,3 and Centrelink fee paying clients. The listing will show the Fee paid, Postcode and age of the clients and will be made available to genuine parties.

 

For more information and a prompt introduction please call Jim Prigg on 0408 520 453 or jim@knowledgemaster.com.au