Business Insights Report
Deal Overview
EBIT
$295k
Revenue
$717k
Client Numbers
174
Terms
Share Sale
Price
$2.19 Million
Financials
Client Numbers
Business Details
Business Overview
Founded 18 years ago, the business for sale operates practice providing financial advice to 174 clients and is located just North of Sydney. The business consists of two advisers including the principal, and a paraplanner. The practice's clients are HNW (average FUM of $3.22 Million), and has excellent Revenue growth with a 13.9% increase in FY22. The business is highly profitable with an adjusted EBIT margin of 33.8% revenue for FY22. The business is independent as per Section 923A of the Corporations Act.
Summary Statistics
174 Total Clients
$717k Recurring Revenue for FP Business in FY22
$295k Adjusted EBIT in FY22
$557 Million in Funds Under Management
Business Opportunities
• Fixed service fees and not asset-based fees ensuring revenue stability.
• A unique value proposition to a desirable niche market.
• Segmented service offer.
• Targeted markets
• Excellent revenue and profit growth.
• Tenure and retention of clients has been consistent throughout the past three years.
• Excellent FUM growth
• Total income is high and sustainable.
• Excellent new business generation in a very difficult market, illustrating compelling value proposition.
• All advisers are FASEA compliant.
• Excellent compliance history.
• Self-Licensed.
• Profitable, standalone business.
• Experience and education of principal.
• Quality, skill and expertise of advisers is high.
Reason for Sale
The sole owner seeks to transition to retirement.
Transition
The principal does not seek equity in the purchaser as this is a step in a wider transition to retirement strategy over the next 3 to 5 years. The principle also is seeking a flexible working arrangement where have can work from home for four days a week. The principle envisages working one to two years full-time, and then reducing to a part-time role for three days a week with all parties happy to continue a working relationship.
Terms
Share Sale
Price Required
Indicative offers subject to due diligence are invited; we expect offers to be around a multiple of 3 times Recurring Revenue plus 1 times Maintainable Consulting Fees.
Purchase Price ~ 3 x $717,000 + 1 x $38,000 = $2,189,000
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