Welcome to Connect
Business Growth Strategies Connecting Businesses
Specific Projects
Expert Witness Work
Succession Planning / Exit Strategies
Licensing and Recruitment Advice
Connect Financial Service Brokers Is one of Australia's leading business brokers
The core business activity of Connect Financial Service Brokers is assisting business owners to sell, merge and acquire financial planning, general insurance, risk insurance and accounting practices nationally. We also provide strategic consulting services.
Business Connectors
People Connectors
Idea Connectors
Industry Update
A quick snap shot by Paul Tynan, CEO of Connect Financial Service Brokers:
Present Market
The government will accept 14 of the 22 recommendations made by Michelle Levy who led the Quality of Advice Review (QAR). The three-stage plan for reform includes:
1. Removing red tape
2. Expanding access to retirement income advice
3. Exploring new channels for advice
Financial Services Minister, Stephen Jones announced the second and third tranches of the QAR in December 2023. The government will support the creation of a new class of financial advice providers – to be termed “qualified advisers” across all financial institutions: superannuation funds, life and general insurers and banks.
Adviser Numbers Falling
According to research from Wealthdata, the number of financial advisers in Australia has dropped from 26,500 to 15,845 between 2019 and 2022.
There have been 365 ceased advisers on the Financial Advisers Register (FAR) since the beginning of the year, specifically, 73 ceased advisers since the start of June.
I expect this exodus of advisers to continue throughout the remainder of 2023.
Technology
Most people can recall their first experience with a new piece of technology that changed how they lived or worked. I remember the excitement of the internet, iPhone and now ChatGPT. We take all these innovations for granted but they have changed our world and we have only scratched the surface of what Artificial Intelligence (AI), PT and the like will achieve and how they will change our lives.
2022 -2023 Levy
The Australian Securities and Investments Commission has released the indicative levy for advisers in 2022–2023 in its latest cost recovery implementation statement.
Licensees that provide personal advice to retail clients on relevant financial products will have a minimum levy of $1,500, plus $3,217 per adviser.
Advice Affordability
Advice is now only affordable to a small minority of Australians and retail advice is not scalable in the current regulatory environment. Advice is becoming an elitist service.
Experience Pathway
The government has released draft legislation to recognise experienced financial advisers. Under the proposed measure, an adviser would be deemed to have met the education requirements if they have 10 years of cumulative experience and a ‘clean record’. Advisers would still need to pass the adviser exam.
you are in good hands
Business for Sale / opportunities
None of our businesses for sale or current opportunities are listed on our website. We provide a confidential service to our clients who prefer that their privacy is maintained. We use our extensive database and contacts to ‘connect’ people, opportunities, and ideas. If you are looking at selling, acquiring or merging please call Paul Tynan for a confidential discussion about your needs.
Current marketplace valuations
*Please note there are several factors that can reduce a business’s value: key person risk, age of clients, regional location, poor compliance, minority interest.
CURRENT RECURRING REVENUE MULTIPLIES
REVENUE TYPE
MULTIPLE
ADVISER SERVICE FEE
1.5 - 3.0
RISK
1.7 - 3.0
MORTGAGE
2.0 - 3.0
GENERAL INSURANCE
2.5 - 3.5
ACCOUNTING
0.7 - 1.2
CURRENT EARNINGS BEFORE INTEREST TAX (EBIT) MULTIPLES
TYPE OF BUSINESS
MULTIPLE
FINANCIAL PLANNING
4.5 -7.0
ACCOUNTING
4.0 - 6.0
GENERAL INSURANCE
7.0 - 11
Paul Tynan is a natural connector of businesses and people. He works passionately to make things happen for his clients, drawing on over 30 years of experience working within the Financial Service industry in Australia and internationally.
PAUL TYNAN, CEO
BBus (Accounting), GradDipAppFin, GradDipFinPlan
Businesses for sale / opportunities
None of our businesses for sale or current opportunities are listed on our website. We provide a confidential service to our clients who prefer that their privacy is maintained. We use our extensive database and contacts to ‘connect’ people, opportunities and ideas. If you are looking at selling, acquiring or merging please call Paul Tynan for a confidential discussion about your needs.