Using a multiple of renewals is the most common method of valuation in use in the financial services industry at present for the valuation of life and health client bases. It is also Chatswood’s preferred method of valuation. Chatswood maintains a schedule of transactions which have been obtained in many ways. We record, source, comment on books, persistency, size of renewals, and comment on transactions. Our schedule is made up of both weak and strong sources.

Examples of weak sources include:

• “I buy bases for”
• “they are worth”
• “I sold for”

Examples of strong sources include:

• Transactions we were involved in
• Sighted contracts
• Regular buyers and trusted sources

If you are interested in discussing adviser business valuations, please express your interest to Jerusalem.Hibru@chatswood.co.nz