Mortgage books command biggest price increase

by Calida Smylie04 Jun 2014
A mergers and acquisitions firm’s half-yearly price gauge has registered a big jump in value for mortgage books.

Radar Results six-monthly price guide – based on market activity across mortgage, accounting, and financial planning books – show buyers will pay 1.7x to 2.2x the mortgage trail.

This is up from 1.5x to 1.9x in the previous six months.

Since November last year, change in the price range has been evident in only two sectors – corporate super clients, which continues to fall, and mortgage clients, which continues to rise, says Radar Results principal John Birt.
“The multiple for trails on mortgage clients has increased again due to the demand for this style of client by buyers and the cross-selling opportunity associated with younger clients.”

However, risk books still command the greatest price, at 3.0x to 3.8x the trail.
Radar Results is currently holding free workshops around the country for mortgage brokers, financial planners and accountants looking to sell within the next three years.

Industry experts give advice at the workshops including on how to value your business and find the right buyer in current market conditions, vendor trade restraints, transition periods, how to form sale contracts, and what can stop a sale.


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