This is a HNW advice business that operates in the Metro Sydney region and began 4.5 years ago. The business is owned by two directors and there are an additional 4 support staff. The business has a mix of superannuation and investment clients with good age demographics. The service offer is high touch, and they receive no insurance commissions. Over the past few years, the business been enjoying organic growth through a strong client referral base.
222 clients, 400 accounts
1.953M excl GST plus of total revenue CY20.
Recurring Revenue approx. 1.92M
$250m Funds Under Management
A High-Net-Worth client base with average FUM per client $1.13m
Average Fee per client of $8,800 or 0.78%.
Expected EBIT FY21 - $1,198,403
Robust discussion on intergenerational wealth transfer and downsizing of family homes lead to further opportunities.
Transition FUM to model portfolio’s
Capacity to grow as low value clients have been migrated out.
80% Fixed service fees and diminishing asset - based fees ensuring revenue stability as reducing exposure to market or economic movements.
EBIT to Gross revenue is excellent at 57.35%
Targeted client demographic.
Excellent compliance history and business model changing to stay in front of future legislative changes.
Excellent retention of staff through change and sustained growth points to strong culture and team management.
No over exposure to key clients.
Reason for Sale
The principals wish to retire over the next 2-3 years (age based).
The preferred transition period is 12 months for handover, and an extension if needed for another 12 months, preferable on a P/T consulting basis.
Indicative offers subject to due diligence are invited; we expect offers to be around a multiple of 3 times Recurring Revenue plus or 6 times EBIT plus.
This is a high-quality asset representing the top 10% of businesses in the country. There are limited comparable businesses in market.
Purchase Price Minimum ~ 3 x 1.92m = $5.67m plus
2 x directors, 4 x Administration Staff.
Annual Agreements: No, but the process has begun and client retention is not deemed a risk
Number of Reviews: Yearly / Bi-Annual
Opt-in / FDS: Yes
Referrals from clients / Strategic discussion on age care to be able help family members of clients / Website / Portal
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