Sealcorp extends ‘buyer of last resort’ to planners
Sealcorp will be standing in as a “buyer of last resort” for its dealer group members wanting to offload their practices.
The advisers of Sealcorp's dealer groups, Securitor and Pact, will be offered opportunities to either grow their practices using existing business equity, or to sell to Sealcorp at a guaranteed price.
Provided that the practices have a minimum recurring revenue of $20,000 a year and at least two years service within either of the two dealer groups, then advisers will be eligible to qualify for Sealcorp's new business assistance facility.
Additionally, the "buyer of last resort" facility will guarantee a floor price for the practice, with the higher recurring revenue attracting a higher guaranteed price. It is understood that even before the "last resort" option is activated with the parent company, Sealcorp will assist advisers for six months to look for a suitable buyers.
"We are now moving to a new era of opportunity for advisers to grow their businesses," Sealcorp national manager dealer groups Paul Robertson says.
Sealcorp director of distribution Dan Powell says the option offers an alternative to aggregation.
"Rather than selling their business to release equity, advisers are now able to use their business equity to finance growth strategies, thereby becoming aggregators themselves," he says.
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