New succession planning product launched
Sydney-based financial services solutions provider, Caboodle Financial Services has launched a new product - the Caboodle Masters Network.
Announcing the move, the company said the product represented "an innovative and compelling succession solution designed to maximise the price principals can achieve for their business while removing the stress and uncertainty typically involved in a sales transaction".
It said the Caboodle Masters Network had been developed by financial planner Peita Diamantidis and business coach Warwick Hearne in response to growing demand from advisers for a succession plan that recognised the full value of their practice; allowed principals to continue writing new business or transition out at their own pace; and ensured clients received ongoing service and advice.
Hearne explained that by joining the Caboodle Masters Network, principals could avoid the pain and disruption often associated with the sale of a business while possibly doubling the price they would receive for their business if they were to sell in the current market.
"For the majority of financial planners, succession is a major issue. Without a viable exit strategy, advisers, their families, and their clients are exposed," he said. "This much-needed solution enables advisers to plan and manage their succession."
With the Caboodle Masters Network, Caboodle Financial Services will acquire a practice's book of business, assume responsibility for servicing clients and pay the principal 50 per cent of recurring revenue for a minimum of 10 years, effectively underwriting the portfolio value from the outset.
The company said that under the arrangement, advisers could continue winning new clients leveraging Caboodle's infrastructure, technology, marketing automation and back-office support, or they could transition to retirement at a pace they choose.
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