Are businesses selling on Profit or Recurring Revenue Multiples?

Welcome to Blog 4 of our 5-part series on whats your business worth. One of the top 3 questions we get asked every other week is whether practices are selling on multiples of profit or recurring revenue. The answer is both! When you purchase a business, you are fundamentally hoping to make a profit from the business. Every buyer we …

Business Value, Royal Commission, FASEA and FOFA Grandfathered Revenue

The removal of all grandfathered revenue in 2020 has impacted some businesses far more than others. The fundamental mathematics underpinning profit for a practice say that unless revenue has increased profit must fall. If profit falls invariably, the value of the business must fall. So at a practice level, the following has occurred: There has been a severe reduction in …

Practice Valuations: Has anything actually changed?

This is Part 2 of our 5-part blog series on “What is your business really worth?”. Our ongoing work in the financial advice sector leads us to conclude that there are two main transactions occurring which result in a valuation outcome for financial planning practice. These are as follows return: Internal Succession Transaction This area of the market is often …

How Will A Buyer Value Your Business?

How will a buyer value your business or the shares you would like to sell them in your business?

That’s a question all business owners should ask themselves as a part of their ongoing business plan. Why? Well, every business owner will likely want to realise some or all of their business value in the future, the timing and the operating model of the business will influence its value.

Know, Like, and Trust

At Centurion, we speak to financial planners every day about all manner of problems they are facing; whether to buy a client book, sell a client book, merge with another planner or business, or enter into an internal succession plan. Whatever the question, it all comes back to one principle: Know, Like and Trust It is relevant to each and …

How to Protect Your Business Value

The Covid19 Pandemic has highlighted, particularly in China, Europe, and the USA, that we never know when our time is up. There has never been a more important time to get your ‘ducks in a row’ to ease pressure on yourself, and your family, if the worst case happens.