In a time where there is so much uncertainty, businesses that can showcase predictability and reliability are the ones that are generating a premium and in high demand.
The multiples stated above can depend on a variety of variables:
1 .Profitability and Size – Trend towards EBIT methodologies, as buyers focus on ROI.
2. Client Demographics – An ageing client base represents a mortality risk to prospective buyers. However this can be offset by providing aged care services or intergenerational advice.
3. Compliance
4. Location
5. Platform and Asset Management
6. FUM
7. Licensing
8. Impact of COVID-19