Overseas buyers interested in Aussie advice firms: consultant

Connect Financial Service Brokers chief executive Paul Tynan said in a statement he had been approached by these overseas companies over the summer break.

“These groups have been observing the local market for a number of years and are now implementing their strategies,” he said.

“However, the key acquisition requisite is sound, successful business models with modern, efficient operational frameworks.”

Accounting practices are also in demand, he said, and more so if they have a robust exit and succession program underway that is supported with outsourced processes, technology and modern HR practices.

However, the sale process may be tougher for small advice firms.

“Unfortunately, their exit goals have been dealt a significant body blow as the new entrants to the financial planning industry (and potential buyers) will struggle as SMEs in their all-important start up years,” Mr Tynan said.

“Buying an existing business under a new AFSL will mean no trail brokerage can be transferred thus deterring the next generation of planners to enter the market.

“With the increases in compliance, licensing, PI costs, new entrants will have no option but to start their financial planning career with an institution.”