Adviser business valuation seminars in Dunedin, Christchurch, and Wellington

Further to recent posts, we are holding adviser business valuation seminars in Dunedin, Christchurch and Wellington. Presenting with Kurt Owen, of BASE accounting, we explore the factors that affect adviser business valuation and how different valuation methods are reconciled in our example valuation report.

The seminar in Dunedin is sold out, but if you are interested in attending email Jerusalem.Hibru@chatswood.co.nz as spaces may open up.

We will be holding our seminar in conjunction with ANZ and Cigna in Christchurch on September 18 at the ANZ Centre from 3 pm to 5.30 pm. If interested, click here to register.

The seminar in Wellington will be held in conjunction with ANZ and Cigna at the ANZ Centre from 9 am to 11.30 am. If interested, click here to register.


Adviser business valuation

Whether you are trying to understand what the changing legislation means for your adviser business or you are thinking of having your client base valued; valuing a business for whatever reason can be a complex and tricky process. Whether it be for preparing to exit your business, bringing a partner into your business or buying into an existing business, there are many factors that come into play.

If this is the case, our adviser business valuation seminars designed to educate advisers about valuations is for you. With Kurt Owen, Senior Accountant & Consultant at BASE, we are running free valuation seminars around the country in the coming months.

The first will be held in Auckland on 7 August from 12 pm to 1.30 pm at the Novotel Auckland Ellerslie. A light lunch will be supplied. Click here to register

Our next stop will be Tauranga on 4 September at Charthouse from 10 am to 11.30 am. Morning tea will be supplied. Click here to register

We will be in Hamilton on the afternoon of 4 September at the Claudelands from 3 pm to 4.30 pm. Afternoon tea will be supplied. Click here to register

Those in Dunedin, Christchurch and Wellington, will have the opportunity to attend our valuation seminar that will be held in conjunction with ANZ and Cigna. Details to be advised. All seminars will be focused on:

  • Exploring the factors that make a valuation necessary
  • The ways an adviser may use a credible valuation
  • The relevance of valuations in relation to current issues
  • The effect of recent agency and commission changes on valuations
  • The marketplace for adviser businesses - and some of the experience of advisers in buying and selling

If you have any question about any of the seminars, please do not hesitate to contact either Russell Russell.Hutchinson@chatswood.co.nz or Jerusalem Jerusalem.Hibru@chatswood.co.nz or call us on 09 480 9535

 


Updated information on adviser business valuation changes

With on going changes to the insurance sector, you may be wondering what the changes mean for your adviser business. OR simply, you could be wondering what the worth of your client base is. Alternatively, you may be faced with inquiries from external stakeholders, whether it’s the bank, an accountant or potential investors who are struggling to understand the value of your business or your renewal income.

If this is the case, this exclusive event designed to educate advisers about valuations is for you. With Kurt Owen, Senior Accountant & Consultant at BASE, we are running a free valuation seminar on 7 August 2019, in Ellerslie.  We will talk about:

  • Exploring the factors that make a valuation necessary
  • The ways an adviser may use a credible valuation
  • The relevance of valuations in relation to current issues
  • The effect of recent agency and commission changes on valuations
  • The marketplace for adviser businesses - and some of the experience of advisers in buying and selling

Click here to register for our Auckland seminar


Adviser Business Valuation changes and challenges seminar

With on going changes to the insurance sector, you may be wondering what the changes mean for your adviser business. OR simply, you could be wondering what the worth of your client base is. Alternatively, you may be faced with inquiries from external stakeholders, whether it’s the bank, an accountant or potential investors who are struggling to understand the value of your business or your renewal income.

If this is the case, this exclusive event designed to educate advisers about valuations is for you. With Kurt Owen, Senior Accountant & Consultant at BASE, we are running a free valuation seminar on 7 August 2019, in Ellerslie.  We will talk about:

  • Exploring the factors that make a valuation necessary
  • The ways an adviser may use a credible valuation
  • The relevance of valuations in relation to current issues
  • The effect of recent agency and commission changes on valuations
  • The marketplace for adviser businesses - and some of the experience of advisers in buying and selling

To find out more, please contact Jerusalem at Jerusalem.Hibru@chatswood.co.nz


Adviser Valuation Seminar

Great to see a full house at our recent seminar on valuation of adviser business, and to have the feedback on the areas you would like to know more about. 

Valuations are useful for all sorts of reasons - not just for buyers and sellers - buy-ins, staff bonus plans, borrowing for growth, restructuring, and sorting out disputes. The best valuation has a firm foundation in both comparison to the marketplace, and a sound accounting basis. 

If you want to learn more about adviser business valuation, then drop me a line, as we are going to follow up the recent session at another Auckland venue, and in Wellington and Christchurch in the next couple of months. Business development managers interested in the subject are also welcome to join us. 


How valuable is your advice business?

I will be running a free valuation seminar, in conjunction with a chartered accountancy firm. The seminar will be focused on:

  • Exploring the factors that make a valuation necessary
  • The ways an adviser may use a credible valuation
  • The relevance of valuations in relation to current issues
  • An example of a valuation to work through.

The seminar will be held at Spencer on Byron  on 29 May from 12 pm - 1.30 pm, and a light lunch will be served. With spaces limited to just 20, if you are interested please let me know as soon as possible by emailing enquiries@Chatswood.co.nz


Adviser Businesses: Opportunity is Among the Uncertainty and Change

Changing requirements for adviser businesses put pressure on everyone, but these changes could create winners and losers in the advice world in particular, as well as the wider insurance sector in general. Some advisers will identify opportunities while others will find the pressure overwhelms them – and so they will make a decision to leave.

I am concerned that rushed change, often poorly designed, could damage the market. That worry applies not just to legal and regulatory change – such as a Supplementary Order Paper running to well over 100 pages – but also to industry reaction to the new law. I am particularly worried about reducing the supply of advice to clients and pushing some out of the advice sector.

But you may also find great opportunity in change. Could that be you?

The advice business that is more likely to succeed will have one or more of the following characteristics:
• A strongly defined advice service with clear value to the customer
• Strength (or scale) in a particular territory
• Well-organised marketing processes, and some experience of marketing automation
• Compliance assurance processes that provide evidence to managers of good adherence to advice standards
• Good governance processes, with effective oversight of how advice is given, how insurance providers are selected, and how clients are served
• Access to capital
• Most of all: an optimistic frame of mind about the opportunities that may emerge
Of course, even the best advice businesses usually need to work on one or more of these, and most need to do some work in each area.

Transplanting investment-focused advice processes to an insurance or mortgage advice business can fail – because the importance of the emotional connection to the client, their need for cover, and knowledge of insurance products is lacking.

Forcing your advice into a process designed by a technology provider can fail too – because systems design isn’t the same as service design. The problems of failing to focus on the customer and their journey through the process of purchasing advice is often lacking.

Taking time to work on these areas of your business is vital, however, because:
• If you know you have strong advice processes, a good compliance assurance plan, and good governance, you will have nothing to fear from the new compliance regime
• If you have good systems, scale, and operational efficiency then you can cope better with any changes, and also look for growth opportunities
…and there will be opportunities to grow – if you understand your balance sheet and have access to capital, you may be surprised at the opportunities available over the coming years.


Changes in Valuation: What Matters and What Doesn't

Recent valuation work has reiterated some of the fundamentals of valuation, and highlighted some recent changes:

  • The market doesn't lie - but it does have preferences, and what you can do with a business may unlock value ignored by the average of the market opinion. The point is that if you turn out not to be as clever as you thought you were, then the market number will prevail when you have to get out of your investment. 
  • Value doesn't change just because you changed the valuation method. If using a multiple of renewals generates a markedly higher or lower number than a discounted cash flow that is telling you something about your assumptions in the DCF, or your business, or both. Look harder, or take advice. 
  • Specialised businesses are worth more than general practices. Interesting - can you make your business worth more by simply narrowing your product range? no, of course not. Specialisation is more than that. When done right your customers are more loyal because they sought you out and/or have fewer alternatives. 
  • If you are buying to hold then you should work on a DCF, if you are buying to sell, use the basis used by your market. 
  • Changes in law and regulation have less effect than we thought: the rule of thumb is 'well, if muggins can comply, then with care and effort, I can certainly comply'. Effects of law and regulation are most keenly felt at the margins: making tiny and marginal businesses fail. Forcing out people who were really not complying anyway. Slowly increasing barriers to entry, making a licence more valuable. 
  • Risk matters, and the portfolio effect is real. A poor reputation, a concentration of large cases, and aggressive insurers all have an effect on business value. 
  • There can be a significant regional effect. Small town businesses have fewer buyers.

 

 


Governance, Risk, and Compliance Experts Highlight Big Data

Governance, risk, and compliance experts are to highlight the risks posed to traditional financial services companies and insurers from the use of big data to disrupt the sector. That is the message at the GRC convention about to start in Melbourne tomorrow.

We have written about this before, and sadly there seems to be a passive 'wait and see' approach being taken by most insurers in this market to the threat of big data. There is a suggestion that whatever happens in big data, it will be invented elsewhere, and may not affect the industry here for a long time... such views might suit a pragmatic middle-manager seeking a quiet life, but it is unlikely to impress anxious shareholders who are worried their equity might shrivel up in the face of a determined assault by a motivated fintech play leveraging masses of user data.