Blog Post

Growth
2 MIN READ

The time to repair your roof is when the sun is shining

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Terry-Bell
Icon for Advisely Partner rankAdvisely Partner
2 days ago

The general interest in M&A, buying, selling and succession planning shows no signs of abating. 

Transitioning, in whichever form it takes, seems set to be with us for some time! And while there remains a dogged belief amongst business owners that there will always be someone looking to purchase their business – this may only be the case if the circumstances are right.

While scale will continue to be the primary focus for corporate and institutional purchasers, what about the smaller end of town? Our data provides a snapshot of the "average" Australian advice firm:

  • 6 staff (including 1.5 advisers)
  • 70% are single owners
  • Annual revenue just under $1.2m
  • Funds under management is around $127 million
  • Average revenue per client is $3,852
  • Revenue per FTE of $214,286
  • ‘Notional’ profitability is 28.4%
  • Less than one in four have a documented business or succession plan
  • And, if they’re not currently thinking about retirement, they will begin to do so shortly.

We have observed a number of initiatives where smaller businesses are being encouraged to merge in an attempt to create a scaled business – with cost saving and/or future sale being the driving motive. Easier said than done, we suspect.

So, if you’re running the typical practice as described above, and a merger with like-minded colleagues isn’t for you, what are your options?

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Updated 2 days ago
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