Leading financial planning firm Caboodle Financial Services has today launched the Caboodle Masters Network – an innovative and compelling succession solution designed to maximise the price principals can achieve for their business while removing the stress and uncertainty typically involved in a sales transaction.
The Caboodle Masters Network was developed by financial planner Peita Diamantidis and business coach Warwick Hearne in response to growing demand from advisers for a succession plan that recognises the full value of their practice; allows principals to continue writing new business or transition out at their own pace; and ensures clients receive ongoing service and advice.
By joining the Caboodle Masters Network, principals can avoid the pain and disruption often associated with the sale of a business while possibly doubling the price they would receive for their business if they were to sell in the current market, according to Hearne.
“For the majority of financial planners, succession is a major issue. Without a viable exit strategy, advisers, their families, and their clients are exposed,” he said.
“This much-needed solution enables advisers to plan and manage their succession. For principals who want to continue writing new business, it can deliver business freedom by assisting with the compliance and administration burden so they can spend more time in front of new clients or on personal pursuits, as they choose.”
With the Caboodle Masters Network, Caboodle Financial Services will acquire a practice’s book of business, assume responsibility for servicing clients and pay the principal 50 per cent of recurring revenue for a minimum of 10 years, effectively underwriting the portfolio value from the outset.
Advisers can continue winning new clients leveraging Caboodle’s infrastructure, technology, marketing automation and back-office support, or they can transition to retirement at a pace they choose.
Those who continue writing new business have an opportunity to significantly increase the value they receive for their practice by extending the 10 year remuneration period by the period for which they are actively writing new business. Financial arrangements and payments are adminstered by Suncorp-owned dealer group Guardian Advice, which licenses Caboodle Financial Services.
According to practice management expert Graham Peatey, who recently joined Caboodle Financial Services, the new Caboodle Masters Network offer is an Australian-first with the power to end the succession nightmare for many advisers.
“In the 20 years I’ve worked in financial services distribution, I’ve never seen a succession planning solution this compelling which is the main reason why I joined the Caboodle team,” Peatey said.
“It addresses the key challenges of succession because from the outset the adviser knows how and what they will be paid for their business. They also have the opportunity to positively impact the valuation.”
The Caboodle Masters Network complements the highly successful Caboodle Passive Client Offer, which was originally launched in 2008.
Under the Caboodle Passive Client Offer, Caboodle Financial Services will acquire a practice’s lower value passive clients and pay the principal 50 per cent of recurring revenue on that book of business for 10 years. Principals continue to service their active clients.
