The number of financial planners seeking advice and information on selling up their practices has increased dramatically since the Federal elections, according to Radar Results.
Radar Results principal John Birt said based on feedback the influx of queries in the last few weeks had to do with Labor’s re-election and the appointment of Bill Shorten as Minister for Financial Services and Superannuation. He said planners believe Shorten would be more forceful in getting the reforms package through that would see the banning of commissions and various other reforms that planners believe would impact on revenues. Birt said that while Chris Bowen had a softer, more diplomatic approach, the perception of Shorten is that his would be a more determined approach.
The planners coming forward with an interest in selling were mostly those nearing retirement, Birt said, although he admitted there had been a number of younger planners in their 40s.
Despite the current influx of queries and potentially a few more sellers on the market over the next few months, he did not expect that the market would dramatically change.
“The actual appetite of our buyers is still pretty high, but they won’t pay over the odds,” said Birt. “If the business is priced correctly and it’s something they want, then they just buy it, no questions asked.”
Birt added that about a dozen people came forward looking to sell after Labor got in, although he expected that the influx would not continue.
He asserted that it is the larger institutions that were snapping up these practices, whereas the smaller players in the market were still suffering from a global financial crisis ‘hangover’.
“It’s not good out here really although there are certain sectors in the market — the larger companies — that are booming because they’ve got the financial backing,” he said.
