My Dealer Services has announced it has responded to escalating demand by self licensees pursuing growth through acquisition opportunities with the launch of a facility to bring advice book buyers and sellers together.
Director Alex Euvrard says in a statement that the escalating demand by self licensees pursuing growth through acquisition opportunities was revealed in a survey of its national network last month (see: Self Licensees Optimistic About the Future).
Euvrard notes that respondents to the MDS survey acknowledged that the growth in consumers needing professional advice will grow as practitioners exiting the sector accelerates.
“Although a negative on one side, the exodus was also regarded as an opportunity with 42 percent of advisers confirming in the survey that they would acquire books of business to facilitate growth.”
He says while 26 percent of respondents initially said they were unsure about pursuing acquisition opportunities, many in this group have now affirmed they will do so utilising the MDS facility.
Euvrard says he has had extensive conversations with financial advisers about this matter and the insights received, together with those revealed in the survey, provided the foundation for MDS online offering.
…principals of financial advisory practices outside MDS seeking to sell their businesses will also be able to access the facility…
In addition, principals of financial advisory practices outside MDS seeking to sell their businesses will also be able to access the facility.
He notes that the survey is one of the activities MDS utilises to connect with its network of AFSLs and financial advisers and that much of the feedback received from the 2021 survey will be implemented into new service offerings over the coming year with the buy sell online facility the first of these initiatives.
Euvrard says that revenue growth will be an industry imperative as the cost of providing advice grows and standing still is not an option in this environment…hence the importance of acquisition to underpin business growth.
“Our objective via the online resource, that will go live on the MDS website next month, is to provide an easily accessible, yet confidential and neutral facility much earlier in the process of bringing buyers and sellers together,” he says.
He adds that buying or selling a financial advice practice or book of clients comprises many pieces to an often complex and emotionally charged undertaking. “This is especially true for mature age advisers that have devoted a lifetime of endeavour to their business.”
Euvrard says that for practice principals committed to the future, “…the current environment of advisers exiting the industry provides an unprecedented window of opportunity to facilitate growth through acquisition.
“Apart from securing the best price, advisers that have decided to exit are keen to connect with the right buyer that will ensure continuity of professional advice and service to their clients – and employment for staff and paraplanners.”
He says that as well as bringing buyers and sellers together, the facilities, services and experience of MDS, which has successfully assisted and supported dealer groups and financial advisers to obtain their own license or establish robust compliance frameworks, will be available.
Utilising MDS’s compliance services, the group’s practices will have a better insight, understanding and appreciation of the business they are acquiring.
Euvrard says the company is confident the timing is right for the new offering and that “…it will be well received by principals seeking to grow their practices and advisers pursuing a successful sale and industry exit.”
