My Dealer Services responds to demand by self licensees to grow through acquisition opportunities

My Dealer Services Pty Ltd (MDS) Director Mr Alex Euvrard has announced that the group has responded to escalating demand by self licensees pursuing growth through acquisition opportunities that was revealed in a survey of its national network with the launch of an easily accessible facility to bring advice book buyers and sellers together. 

Respondents to the MDS survey acknowledged that the growth in consumers needing professional advice will grow as practitioners exiting the sector accelerates said Euvrard. 

“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.

“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 confirmed that he had extensive conversations over many months with financial advisers about this matter and the insights received, together with those revealed in the survey, provided the foundation for MDS online offering. 

In addition, principals of financial advisory practices outside MDS seeking to sell their businesses will also be able to access the facility.

The survey is one of the activities MDS utilises to connect with its network of AFSLs and financial advisers.  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 went on to say 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. 

“Furthermore, the usual practice of engaging an agent or broker to facilitate a commercial outcome when buying or selling an advice business or book of clients is no longer appropriate”, continued Euvrard.

“Unfortunately, far too often this is undertaken at the last minute and the resultant lateness of the transaction results in less than satisfactory outcomes for buyers, sellers and the acquired clients. 

“In a time poor, highly regulated and scrutinised industry this practice is unsustainable and fraught with unnecessary risk.”

“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”, said Euvrard.

“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.

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. 

As well as bringing buyers and sellers together, the facilities, services and extensive experience of MDS that 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 concluded, “For over a decade, MDS has been assisting advisers and dealer groups to become self-licensed and then provided the compliance, business support required to operate in the challenging financial advisory environment.

“We are confident the timing is right for the new offering and it will be well received by principals seeking to grow their practices and advisers pursuing a successful sale and industry exit”.

ENDS

Issued by My Dealer Services Pty Ltd    www.mydealerservices.com.au

Media Enquiries:       Mr. Joe Perri, Joe Perri & Associates Pty Ltd

                                    Mob:     +61 412 112 545       Email:     jperri@joeperri.com.au