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
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
