Selling price of planning businesses increases
The selling price of financial planning businesses has increased for the first time in 13 years, according to a financial services merger and acquisition specialist.
Data from Radar Results found financial planning businesses moved up the higher end multiple for investment and superannuation clients to 2.3 times the recurring revenue in the 65 to 79-year-old category. It said this reflected demand for older clients.
It noted the higher-end multiple for investment and super clients below age 65 moved up to 2.8 times the recurring revenue.
Radar also found there was demand for complete licensee groups of 50 to 200 authorised representatives to be acquired in one bulk purchase.
Price movements
Revenue type |
Recurring revenue multiple |
Investment and super clients (aged 80+) |
0.80x to 1.0x |
Investment and super clients (ages 65 to 79) |
1.7x to 2.3x (Previously 1.7x to 2.2x) |
Investment and super clients (aged up to 65) |
2.2x to 2.8x (Previously 2.2x to 2.7x) |
Risk clients (under age 55) |
2.2x to 2.7x |
Risk clients (ages 55 to 60) |
2.0x to 2.3x |
Risk clients (aged 61+) |
1.0x to 1.5x |
Corporate super plans – commissions switched off |
Negotiable |
Source: Radar Results
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.