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
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
Morningstar has made two business development appointments to drive the growth strategy of its financial advice software, AdviserLogic.