Demand increases for older advice clients

Buyer demand for older financial advice investment clients has increased, with prices now at 1.8 times the recurring revenue, according to business broker Radar Results.

According to Radar Results’ six-month price guide, the main changes to prices since 31 October occurred within the ‘Investment clients (age 80 years plus)’ category.

“We have seen client registers change hands at prices of up to 1.8 times the recurring revenue (RR), previously 1.5 times,” said Radar Results principal John Birt.

“Basically, demand for these clients has increased due to shortages of registers for sale. Even now, the older client bases in the marketplace are looking attractive.”


There has also been increased demand for clients in their late 70s, attracting prices between 1.8 to 2.5 times the recurring revenue, Mr Birt said.

Meanwhile, demand for risk clients continues to soar, despite the introduction of the Life Insurance Framework.

“Most demand has been for book sizes of $150,000 to $500,000 in annual renewal commissions,” Mr Birt said.

“The age of the clients is important, and the younger the clients, the higher the price multiple. Whether the premiums have been written as stepped or level doesn't appear to make a price difference.”


Demand increases for older advice clients
Demand increases for older advice clients
ifa logo

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.