Radar Results Price Guide to June 2024

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Radar Results Price Guide to June 2024

Revenue Type and Client’s Age
Investment and super clients (aged 80 yrs+) 0.9x to 1.1x
Previously 0.80x to 1.0x
Investment and super clients (aged 65 -79 yrs) 1.9x – 2.5x
Investment and super clients (aged up to 64 yrs) 2.3x to 3.0x
Previously 2.2x to 2.8x
Risk insurance clients (under 55 yrs) 2.3 to 3.0
Risk insurance clients (ages 55 to 60 yrs) 2.1x – 2.5x
Risk clients (aged 61 yrs+) 1.0x to 1.5x
Corporate super plans – commission switched off Negotiable
Mortgage clients – home loan trails 2.5x – 3.5x
Accounting fees – business clients 0.95x – 1.30x
Accounting fees – individual returns 0.5x to 0.9x
SMSF administration fees 1.5x – 1.75x
Previously 1.5x – 2.0x

The multiples above can vary depending on the terms the vendor offers to the purchaser when selling; the location of the vendor’s clients; the client’s ages; Funds Under Management or Administration, and the investment products recommended. The $ account balances of each client are essential with the fee-for-service charge — clients with higher $ account balances, paying higher fees, naturally command the higher multiples.

Multiples paid for risk books or insurance-revenue-based practices will depend on the client’s occupation, age, premium size, policy type, and geographic location of the clients

BASED ON FEE SIZE PER CLIENT

Revenue Type Recurring Revenue Multiple
Investment and super clients

Fee per client of less than $2,000 per annum

Fee per client between $2,000 to $4,000 per annum

Fee per client above $4,000 per annum

  

1.0x – 2.0x

2.2x to 2.5x

2.7x – 3.5x
Risk insurance clients

Fee per client of less than $2,000 per annum

Fee per client $2,000 to $4,000 per annum

Fee per client above $4,000 per annum

  

1.0x – 2.2x

2.2x to 2.5x

2.6x to 3.5x
Accounting fees – business clients

Fee per client up to $4,000 per annum

Fee per client above $4,000 per annum

  

1.1x to 1.2x

1.25x to 1.35x
Accounting fees – individual returns 0.5x to 0.9x

The multiples above can vary depending on the terms the vendor offers to the purchaser when selling, the location of the vendor’s clients, the client’s ages, and the investment products recommended. The account balances of each client are essential with the fee-for-service charge— The most requested clients are those paying fees between $3,000 to $6,000 per annum with reasonably high $ account balances. These clients, therefore, command the higher multiple. Multiples paid for risk books or insurance-revenue-based practices will depend on the client’s occupation, age, premium size, policy type, and geographic location of the clients.

The tables above show the multiples based on two different methods of valuing a client base. Most client bases are now valued using a combination of both methods.

Radar Results Price Guide to June 2023

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Radar Results Price Guide to June 2023

Revenue Type and Client’s Age
Investment and super clients (aged 80 yrs+) 0.8x to 1.0x
Investment and super clients (aged 65 -79 yrs) 1.9x – 2.5x
Previously 1.7x to 2.3x
Investment and super clients (aged up to 64 yrs) 2.3x to 3.0x
Previously 2.2x to 2.8x
Risk clients (under 55 yrs) 2.3 to 3.0
Previously 2.2x to 2.7x
Risk clients (aged 55 – 60 yrs) 2.1x – 2.5x
Previously 2.0x to 2.3x
Risk clients (aged 61 yrs+) 1.0x to 1.5x
Corporate super plans – commission switched off Negotiable
Mortgage clients – home loan trails 2.5x – 3.5x
Previously 2.25x to 3.25x
Accounting fees – business clients 0.95x – 1.30x
Previously 0.90x to 1.25x
Accounting fees – individual returns 0.5x to 0.9x
SMSF administration fees 1.5x – 2.0x

The multiples above can vary depending on the terms the vendor offers to the purchaser when selling; the location of the vendor’s clients; the client’s ages; Funds Under Management or Administration, and the investment products recommended. The $ account balances of each client are essential with the fee-for-service charge — clients with higher $ account balances, paying higher fees, naturally command the higher multiples.
Multiples paid for risk books or insurance-revenue-based practices will depend on the client’s occupation, age, premium size, policy type, and geographic location of the clients.

BASED ON FEE SIZE PER CLIENT

Revenue Type Recurring Revenue Multiple
Investment and super clients

Fee per client of less than $2,000 per annum

Fee per client between $2,000 to $4,000 per annum

Fee per client above $4,000 per annum

 1.0x – 2.0x

2.2x to 2.5x

2.7x – 3.5x
Previously 2.6x – 3.3x
Risk insurance clients

Fee per client of less than $2,000 per annum

Fee per client $2,000 to $4,000 per annum

Fee per client above $4,000 per annum

 1.0x – 2.2x

2.2x to 2.5x

2.6x to 3.5x
Previously 2.6x to 3.3x
Accounting fees – business clients

Fee per client up to $4,000 per annum

Fee per client above $4,000 per annum

 1.1x to 1.2x

1.25x to 1.35x
Accounting fees – individual returns 0.5x to 0.9x

The multiples above can vary depending on the terms the vendor offers to the purchaser when selling, the location of the vendor’s clients, the client’s ages, and the investment products recommended. The account balances of each client are essential with the fee-for-service charge— The most requested clients are those paying fees between $3,000 to $6,000 per annum with reasonably high $ account balances. These clients, therefore, command the higher multiple. Multiples paid for risk books or insurance-revenue-based practices will depend on the client’s occupation, age, premium size, policy type, and geographic location of the clients.

The tables above show the multiples based on two different methods of valuing a client base. Most client bases are now valued using a combination of both methods.

A market value can be determined depending on the type of AFSL and its authorisations. An AFSL can sell for a price based on what it’s allowed to do. Below is a summary of what a buyer may be expected to pay for an AFSL.

Type of AFSL Authorisations Market value
Vanilla or basic Financial advice retail, superannuation, risk insurance, negative gearing $20,000
Managed discretionary trust MDA Plus the above $40,000
Derivatives and Options plus the above Plus the above $80,000 to $100,000
Forex trading Plus the above $500,000 plus

Radar Results Price Guide to June 2022

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BASED ON REVENUE TYPE AND AGE

Revenue Type and Age Recurring Revenue Multiple
Investment and super clients (aged 80 yrs+) 0.8x to 1.0x
Investment and super clients (aged 65 -79 yrs) 1.7x to 2.3x
Investment and super clients (aged up to 64 yrs) 2.2x to 2.8x
Risk clients (under 55 yrs) 2.2x to 2.7x
Risk clients (aged 55 – 60 yrs) 2.0x to 2.3x
Risk clients (aged 61 yrs+) 1.0x to 1.5x
Mortgage clients – home loan trails 2.25x to 3.25x

Previously 2.1x to 3.0x
Accounting fees – business clients 0.90 x to 1.25x
Accounting fees – individual returns 0.5x to 0.9x

BASED ON FEE SIZE PER CLIENT

Revenue Type Recurring Revenue Multiple
Investment and super clients

Average fee per client $2,000 to $4,000 per annum

Average fee per client $4,000 to $10,000 per annum

  

2.2x to 2.5x

2.6x to 3.3x
Risk insurance clients

Average fee per client $2,000 to $4,000 per annum

Average fee per client $4,000 to $10,000 per annum

  

2.2x to 2.5x

2.6x to 3.3x
Accounting fees – business clients

Average Fee per client $2,000 to $4,000 per annum

Average fee per client $4,000 to $10,000 per annum

  

1.10x to 1.20x

1.25x to 1.35x
Accounting fees – individual returns 0.5x to 0.9x

 

The multiples above can vary depending on the terms the vendor offers to the purchaser when selling, the location of the vendor’s clients, the client’s ages and the investment products recommended. The account balances of each client are essential with the fee-for-service charge—average fees per client between $4,000 to $6,000 per annum command the higher multiple.

Multiples paid for risk books or insurance-revenue-based practices will depend on the client’s occupation, age, premium size, policy type and the geographic location of the clients. The multiples displayed above are for high-quality risk clients with clients ages of between 35-55 years and where the policy owner is a small business owner or a professional based in a capital city.

 

 

Radar Results Price Guide to December 2021

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Price Guide March 2021

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Radar’s Price Guide May 2020

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September 2019 Price Guide

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Radar Results Price Guide to September 2019: –

Revenue Type Recurring Revenue Multiple
Investment and super clients (aged 80 yrs+) 1.0x to 1.2x
Investment and super clients (aged 65 -79 yrs) 1.8x to 2.3x
Investment and super clients (aged up to 64 yrs) 2.3x to 2.8x
Risk clients (under 55 yrs) 2.3x to 2.8x
Risk clients (aged 55 – 60 yrs) 2.0x to 2.3x
Risk clients (aged 61 yrs+) 1.0x to 1.5x
Corporate super plans – commission switched off Negotiable
Grandfathered investment trail commissions Nil to 1.0x
Mortgage clients – home loan trails 1.8 to 2.2x
Accounting fees – business clients 0.75 x to 1.2x
Accounting fees – individual returns 0.5x to 0.9x

The multiples above can vary depending on the terms offered by the vendor, actual location of the clients, client ages and the investment products recommended. In relation to multiples paid for risk books or insurance-revenue based practices, the client’s occupation, age, premium size, policy type and the geographic location of the clients is critical. The multiples displayed above are for high-quality risk clients.

Price Guide – March 2019

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Revenue Type Recurring Revenue Multiple
Investment and super clients (aged 80+ years) Fee for service 1.0x to 1.2x
Investment and super clients (aged 65 -79 years) Fee for service 1.8x to 2.5x
Investment and super clients (aged up to 64 years) Fee for service 2.5x to 2.8x
Risk clients (aged under 55 years) 2.5x to 3.0x
Risk clients (aged 55 – 60 years) 2.0x to 2.5x
Risk clients (aged 61+ years) 1.0x to 1.5x
Corporate super plans – commission switched off* Negotiable 
Corporate super plans – commission converted to a flat fee for each employee 1.5x to 2.0x
Grandfathered investment trail commissions 1.0x to 1.5x
Mortgage clients – home loan trails 1.7x to 2.0x
Accounting fees – business clients 0.75 x to 1.2x
Accounting fees – individual returns 0.5x to 0.9x

Radar’s Price Guide

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An indication of prices as at August 2018

Revenue Type Recurring Revenue multiple
Investment and super clients (age 80 yrs+)  1.0x to 1.2x

(Down from 1.8x)
Investment and super clients (age 65-79 yrs) 1.8x to 2.5x
Investment and super clients (age up to 64 yrs) 2.5x to 3.0x
Risk clients (under 55 years) 2.5x to 3.0x

(Down from 3.5x)
Risk clients (over 55 years) 2.2x to 2.6x

(Down from 2.8x)
Super clients – commission switched off Neg*
Corporate super clients – flat fee per employee 1.5x to 2.0x
Cs and Ds – mix of both risk and investment 1.5x to 2.0x

(Down from 2.7x)
Mortgage clients – home loan trails 2.0x to 2.5x
Accounting fee – business clients 0.75x to 1.2x
Accounting fee – individual returns 0.5x to 0.9x

* No transactions

The above multiples can vary depending on the terms offered by the vendor, geographic location of the client, age of the client and the investment products within the client’s portfolio. Multiples paid for risk books or insurance revenue-based practices will vary depending on the client’s occupation, size of premium, type of policy (stepped or level) and geographic location of the client. The multiples displayed above are for high-quality risk clients. The table above is based on market activity over the past twelve months to August 2018.
Life insurance price multiples lower (Down 8%)

Radar Results has seen prices paid for risk insurance client registers reduce for two reasons. Firstly, the Life Insurance Remuneration Act effective from 1 January 2018 has reduced the amount of upfront commission paid on new life insurance policies, income protection policies and trauma policies down to 80% for this year and then down to 60% for 2019. Previously, insurance companies were paying up to 120% of the first year’s premium as a commission. Secondly, the responsibility period for the commission payment has been pushed out to two years after previously being just one year. The impact of The Royal Commission into the financial services sector and the higher education standards looming has influenced more businesses to come to market. With many more sellers now in the market, there’s a larger choice, and a decline in prices now offered. There is more risk insurance businesses on the market now than at any other time that I can recall.                                                                       

Investment & superannuation clients 80yrs+ (Down 30%)

The Royal Commission has again spooked the market with investment clients (pension) and superannuation clients 80 years old and above selling for far lower prices than earlier in the year. Some product providers of legacy products have been switching off the trail commission that had been paid to licensees and advisers for these clients. Recently the sale price of risk insurance register was reduced by over 13%, or nearly $100,000 as a result of legacy product commission being turned off. As explained by the product providers, this was done in the best interest of the clients. 

Grandfathered trail commission – C & D clients (Down 25%)

Radar Results has seen recent sale transactions trade between 1.5 times and 2 times the net trail commission. Previously, these had been selling for as high as 3 times, but more commonly at a high of 2.7 times. Once again, the Royal Commission has prompted some industry bodies to recommend that they be phased out or even cease immediately. These trail commission registers in 2013/14 were sought after because no Fee Disclosure Statement (FDS) was required and the opt-in requirement for new clients from 1 July 2013, didn’t apply. Even some major banks that used to lend on this asset class have done a back-flip and now don’t lend against these trail books.

 

Radar Results Price Guide

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An indication of prices as at 1 March 2018

Revenue Type Recurring Revenue multiple
Investment and super clients (age 80 yrs+) 1.0x to 1.8x
Investment and super clients (age 65-79 yrs) 1.8x to 2.5x
Investment and super clients (age up to 64 yrs) 2.5x to 3.0x
Risk clients (under 55 years) 3.0x to 3.5x
Risk clients (over 55 years) 2.5x to 2.8x
Super clients – commission switched off Neg*
Corporate super clients – flat fee per employee 1.5x to 2.0x
Cs and Ds – mix of both risk and investment 2.0x to 2.7x
Mortgage clients – home loan trails 2.0x to 2.5x
Accounting fee – business clients 0.75x to 1.2x
Accounting fee – individual returns 0.5x to 0.9x

(Changes since March 2017 in red)

* No transactions

The above multiples can vary depending on the terms offered by the vendor, geographic location of the client, age of the client and the investment products within the client’s portfolio. Multiples paid for risk books or insurance revenue-based practices will vary depending on the client’s occupation, size of premium, type of policy (stepped or level) and geographic location of the client. The multiples displayed above are for high-quality risk clients. The table above is based on market activity over the past twelve months to 1 March 2018.