Business Insights Report
Deal Overview
EBIT
$1,490,000
Revenue
$2,900,000
Client Numbers
596
Terms
Asset Sale
Price
$8.9 Million Plus
Summary Statistics
Client Revenue segmented by age
Business Details
Business Overview
Founded in 2011, the financial advisory practice services 596 separate client groups and is located in central Adelaide. The business consists of one CEO, one head of tax, four private client advisers, three client service managers and a receptionist. The practice has good age demographics with 65.3% of revenue being generated by clients under 70 and the business boasts an excellent adjusted EBIT margin of 51.4%.
Summary Statistics
596 Clients
$2,690,000 in Annualised Recurring Revenue for FY24
$1,490,034 in Annualised Adjusted EBIT for FY24
$330 plus in Million of Funds Under Management
Circa 220 SMSF's
Business Opportunities
• Very Profitable Business with annualised AEBIT of circa $1.3mill and circa $2.75M RR.
• Fully corporatized business model with no reliance on the principal for ongoing business viability.
• Good Client Numbers, with high fee quantum per client group.
• Highly Organised Client Filing and Technology.
• Significant Ongoing Revenue.
• High client retention.
• Referrals.
• Smooth Transition.
• Fully operational AFSL with excellent compliance history and low risk activities.
• Fully owned and operated Super and Non-Super SMA through Macquarie Wrap Platform.
• Fully functioning SMSF administration capabilities.
• Opportunity for significant uplift in revenue due to addition of Risk Services, and other advice streams.
• Potential migration of platform and investment management Clients to SMSF and SMA.
• The business has capacity to take on another 100 clients without changes to its headcount.
Reason for Sale
The principal is looking to transition to retirement in the near future.
Transition
Both principals are open to remaining with the business during the retention period and beyond.
Terms
Asset Sale
Price Required
Indicative offers subject to due diligence are invited, we expect offers to be around a multiple of 6 times Adjusted EBIT and above . The business is large and ‘standalone’ and few purchasers could easily “tuck in” this business into their own existing infrastructure. It is for this reason we believe that Adjusted EBIT is the best methodology to use when calculating the purchase price.
Purchase Price ~ 6 x $1,490,034 = $8,940,000
The purchase price will be based off the rolling twelve-month Adjusted EBIT figures at completion of Due Diligence.
Staff
1 x CEO
1 x Head of Tax & Technical
4 x Private client advisers
3 x Client service managers
1 x Receptionist
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