Whilst your financials impact your business valuation, so to do other factors including your location. It's probably not hard to understand that there are more buyers for a Melbourne based financial planning business (or client base) than there is for rural New South Wales or Queensland. It can also be harder to recruit talent (be it advisers, or support staff) in more regional areas.
This puts downward pressure on the business valuations, meaning it's unlikely a regional business would obtain the same multiples that a business in a CBD would.
It also puts more importance on considering your succession options earlier. How can you adapt your business, to have the best options? How can you align yourself with businesses in nearby regions? How can you grow talent in house? If you want to talk about how we can help you set yourself up for success, contact our office using the link below.
Comments