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
ASIC has released the results of the latest financial adviser exam, held in November 2025.
Winners have been announced for this year's ifa Excellence Awards, hosted by Money Management's sister brand ifa.
Adviser exits have reported their biggest loss since June this week, according to Padua Wealth Data, kicking off what is set to be a difficult December for the industry.
Financial advisers often find themselves taking on the dual role of adviser and business owner but a managing director has suggested this leads only to subpar outcomes.
