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 an advice M&A deal taking around six months to enact, two experts have shared their tips on how buyers and sellers can avoid “deal fatigue” and prevent potential deals from collapsing.
Several financial advisers have been shortlisted in the ninth annual Women in Finance Awards 2025, to be held on 14 November.
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
