A financial planning consultancy firm has launched a program to help planning business owners exit the industry.
Back Office Hero’s “exit strategy” program aimed to help financial planning businesses be “sale ready”.
The firm said program followed the Hayne Royal Commission which had led to the dramatic rise in the number of financial planners looking to sell their business.
The program addressed core back-office processes – operational processes, producing business metrics, management of client data through Xplan and leveraging through outsourcing, and an information memorandum that supported the value of the business.
Back Office Hero principal, Mark Lewin, said: “Our research has shown a high number of financial planning businesses where key staff lack the organisational skills around back-office systems and compliance.
“The use of procedures, checklists and outsourcing, materially lifts efficiencies within a practice. This increases profitability and the practice valuation, resulting in a business that is ‘sale ready’.”
Lewin noted Xplan was key to the program despite it being “maligned” in the industry.
“Once a procedure driven practice combines the power of Xplan with a quality outsourcing partner, the business becomes transferable. In other words, it becomes appealing to many buyers.”