Divorce and shareholder changes behind practice valuations
Radar Results has noted a decrease in requests for financial planning practice valuations, although the reasons behind getting a valuation have changed significantly since the global financial crisis (GFC).
The number of valuations conducted by Radar Results has fallen 31 per cent on 2010. However, the consultancy noted that the reasons for getting a valuation have changed, with the proportion of requests as a result of divorce and property settlements increasing dramatically. Radar Results noted that before the GFC, most valuations were for finance applications or for the lender to check on the equity-to-loan ratio – although few were for those reasons now, it added.
Changes to the shareholding between partners in a financial planning business were also now more prevalent reasons behind a valuation as younger partners sought to buy a larger stake in their planning business, Radar Results stated.
Recommended for you
The corporate regulator has announced its first adviser banning of the year with the permanent ban of a Queensland-based former adviser that was sentenced to seven years’ imprisonment.
The Australian financial advice industry has risen by more than 20 advisers this week, with nearly half joining WT Financial and Sequoia.
Two financial advice professionals have shared their tips for success when building an effective Professional Year program as more advisers look to bring on junior staff to their practices.
Numbers are in for 2024, with Wealth Data confirming how many advisers left during the calendar year and which business models saw the largest growth in terms of new licensees.
