[cs_content][cs_section bg_image=”https://centurionmarketmakers.com.au/wp-content/uploads/2016/12/financial-practice-valuation.jpg” bg_color=”hsl(0, 0%, 16%)” parallax=”true” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ class=”cs-hide-sm cs-hide-xs” style=”margin: 0px;padding: 150px 0px 100px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/2″ style=”padding: 0px;”][cs_text]
Know where you stand.
Know what to expect.
Get a market value appraisal for your practice.[/cs_text][x_gap size=”30px”][x_button size=”global” block=”false” circle=”false” icon_only=”false” href=”https://centurionmarketmakers.com.au/valuation-request/” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=”” style=”color: #333333;border-color: yellow;background-color: yellow;font-weight: bold;”]Request Valuation[/x_button][x_gap size=”50px”][/cs_column][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/2″ style=”padding: 0px;”] [/cs_column][/cs_row][/cs_section][cs_section bg_image=”https://centurionmarketmakers.com.au/wp-content/uploads/2016/12/financial-practice-valuation.jpg” bg_color=”hsl(0, 0%, 16%)” parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ class=”cs-hide-md cs-hide-lg cs-hide-xl cs-ta-center” style=”margin: 0px;padding: 50px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/2″ style=”padding: 0px;”][cs_text]
Know where you stand.
Know what to expect.
Get a market value appraisal for your practice.[/cs_text][x_gap size=”30px”][x_button size=”global” block=”false” circle=”false” icon_only=”false” href=”https://centurionmarketmakers.com.au/contact-us/” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=”” style=”color: #333333;border-color: yellow;background-color: yellow;font-weight: bold;”]Enquire now[/x_button][x_gap size=”50px”][/cs_column][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/2″ style=”padding: 0px;”] [/cs_column][/cs_row][/cs_section][cs_section bg_color=”hsl(0, 0%, 100%)” parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ style=”margin: 20px 0px 0px;padding: 50px 0px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/2″ style=”padding: 0px;”][cs_text]
How do we value your practice?
– Multiple of Recurring Revenue, or
– Multiple of Earnings before Interest and Tax
We assess businesses and/or client bases using the appropriate methodology for your situation and will assess the practice against 8 key items that buyers consider when reviewing an acquisition opportunity. These 8 items significantly influence the buyer’s perception of value and risk.[/cs_text][/cs_column][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/2″ style=”padding: 0px;”][cs_text]Our appraisals have been used for:[/cs_text][cs_icon_list][cs_icon_list_item title=”Legal matters” type=”check” link_enabled=”false” link_url=”#” link_new_tab=”false”]Legal matters[/cs_icon_list_item][cs_icon_list_item title=”Personal matters” type=”check” link_enabled=”false” link_url=”#” link_new_tab=”false”]Personal matters[/cs_icon_list_item][cs_icon_list_item title=”Financing matters” type=”check” link_enabled=”false” link_url=”#” link_new_tab=”false”]Financing matters[/cs_icon_list_item][cs_icon_list_item title=”Shareholder negotiation and succession” type=”check” link_enabled=”false” link_url=”#” link_new_tab=”false”]Shareholder negotiation and succession[/cs_icon_list_item][cs_icon_list_item title=”Sellers looking to validate a buyer's offer” type=”check” link_enabled=”false” link_url=”#” link_new_tab=”false”]Sellers looking to validate a buyer’s offer[/cs_icon_list_item][/cs_icon_list][/cs_column][/cs_row][/cs_section][cs_section parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ style=”margin: 0px;padding: 45px 0px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][x_columnize]
What makes a business attractive to potential acquirers?
Different acquirers value different things, but here are 6 common ones.
Information, the more the better.
Information on clients, numbers by service segment and recurrent revenue segment; FUM segments, demography, location. Information on sales history, new revenue and clients per year with sources, new FUM written and recurrent revenue split between existing & new clients.
A clear advice offer and service proposition.
One that is documented for clients and staff and is incorporated into client communications.
Clients who are transferable.
Clients who are happy for staff to respond to their inquiries, not just you, or to deal with other advisers in the practice if you’re away.
Staff retention.
Ensuring your advisers are on commercial contracts with restraint of trade terms.
Profit / EBIT, the higher the better.
Most practices that are buyers will use bank funding and require profit/cashflow to cover loan servicing costs – banks look for the ability to service up to 2 times loan service costs. Institutional buyers look to optimize revenue and profit across advice, platform and investment management.
Referral sources that will continue post sale.
Buyers are buying future revenue and profit. They look at the past to identify where the business revenue and profits have been, and they’re banking on the future being at least the same or better.
Ability to control risk.
Buyers will want to introduce terms for the transaction that help them mitigate perceived risk and aid in integration.[/x_columnize][/cs_column][/cs_row][/cs_section][cs_section bg_color=”hsl(54, 100%, 50%)” parallax=”false” separator_top_type=”none” separator_top_height=”50px” separator_top_angle_point=”50″ separator_bottom_type=”none” separator_bottom_height=”50px” separator_bottom_angle_point=”50″ class=”cs-ta-center” style=”margin: 0px;padding: 45px 0px 50px;”][cs_row inner_container=”true” marginless_columns=”false” style=”margin: 0px auto;padding: 0px;”][cs_column fade=”false” fade_animation=”in” fade_animation_offset=”45px” fade_duration=”750″ type=”1/1″ style=”padding: 0px;”][cs_text]
Find out what your business is worth.
[/cs_text][x_gap size=”30px”][x_button size=”global” block=”false” circle=”false” icon_only=”false” href=”https://centurionmarketmakers.com.au/valuation-request/” title=”” target=”” info=”none” info_place=”top” info_trigger=”hover” info_content=”” style=”color: #ffffff;border-color: #333333;background-color: #333333;”]Request Valuation[/x_button][/cs_column][/cs_row][/cs_section][/cs_content]