Business Insights Report
VIC,Eastern Metropolitan Melbourne High Net Worth Boutique Accounting & FP Practice in Melbourne’s Eastern Metro Suburbs for Sale
Financial Planning Accounting Risk $3m-$5mDeal Overview
EBIT
720,000
Revenue
2,400,000
Client Numbers
239 Client Groups
Terms
Asset Sale
Price
$4.1 Million Plus
Accounting clients age distribution
Financial Planning clients age distribution
Business Details
Business Overview
Established in 1999, the Accounting & Financial Planning practice services 239 separate client groups and is located in the Eastern Metropolitan area of Melbourne, Victoria. The business consists of two Directors, one head of tax, three senior accountants, one senior financial advisor and two admin staff. The practice has excellent age demographics with 55.4% of financial planning revenue being generated by clients under the age of 60 and 60% of accounting clients being under the age of 65. The practice also boasts strong profitability levels at a 30% Adjusted EBIT Margin and additionally has extremely efficient systems and processes in place.
Summary Statistics
- 239 Client Groups
- $2,368,293 in Recurring Revenue for FY24
- $715,401 in Adjusted EBIT for FY24
- $2,675,000 Average Funds Under Management
Business Opportunities
- Has a strong foothold/presence in the medical industry for its Accounting division and motor industry for its Financial Planning division.
- Accounting systems can be easily migrated to a potential buyer. All accounting systems are integrated with one another.
- Off shore team is heavily ingrained within the business and are involved in day to day operations.
- The business offers estate planning and aged care services, which mitigates any client age mortality risk.
- There is a high concentration of multidisciplined clients who use the business for both Accounting and FP/Risk.
- The Financial Planning clients are High Net Worth with average FUM is $2,674,349.
- Extremely loyal client base, with only a handful of clients leaving over the past five years.
- Significant referral opportunities with pipelines already established between Accounting and Financial planning.
Reason for Sale
The two principal's are looking to transition to retirement in the medium-term future.
Transition
One of the directors’ preference is to remain with the business post settlement for the next two to three years on a part time basis (3 days a week).
The other director seeks to ensure a smooth transition with the new owners and to remain involved with the business on a part time basis throughout the transition period (first twelve months) to maintain client retention. Following this period, they are happy to work on a part time basis (2 – 3 days) for up to five years.
Terms
Asset Sale
Price Required
Indicative offers subject to due diligence are invited; we expect offers to be around a multiple of 1.3 times Accounting Maintainable Earnings plus 3 times Financial Planning Recurring Revenue + 2.5 times Risk ongoings.
($1,700,465 x 1.3) + ($502,828 x 3) + ($165,000 x 2.5) =$4,131,588.50
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