Melbourne's financial planning acquisition market
The post-Royal Commission restructuring of the Australian financial advice industry fundamentally changed the acquisition landscape. Institutional bank-owned licensees exited the market, creating a vacuum that has been filled by independent aggregators, PE-backed platforms, and well-capitalised dealer groups actively acquiring quality advice books across Melbourne and Victoria.
For practice owners, this has driven meaningful competition for quality businesses. Buyers understand recurring revenue, know what a clean client register looks like, and are willing to pay premium multiples for well-run practices with strong FUA and low adviser dependence on the principal.
What drives valuation for a Melbourne financial planning practice?
Key value drivers for Melbourne financial planning practices
- High proportion of recurring, fee-for-service revenue — not one-off advice fees
- Strong funds under advice (FUA) — particularly above $50M and $100M thresholds
- HNW or SMSF-focused client demographics — higher average client value
- Low client concentration — no single client representing more than 5% of fees
- Clean compliance record — no ASIC actions, no significant PI claims history
- Advisers in place beyond the principal — reduces key person risk substantially
- Documented client engagement processes and advice files
- Licensing clarity — AFSL holder or authorised representative with clear structure
Who buys Melbourne financial planning businesses?
PE-backed wealth platforms
Several PE-backed consolidators are actively acquiring Melbourne advice practices as part of national aggregation strategies. They offer professional acquisition processes, competitive pricing, and post-acquisition support infrastructure — but vary significantly in culture and how much autonomy they provide principals.
Licensee and dealer group acquirers
Larger dealer groups seeking to expand their adviser count and FUA. Acquisitions typically involve both the client book and the adviser relationships. Strong cultural fit consideration — advisers need to align with the acquiring licensee's model and product philosophy.
Accounting-integrated wealth platforms
Accounting firms with financial planning divisions actively acquire standalone advice practices to integrate wealth management into their existing client relationships. Good fit for practices with a strong accounting referral base or SME client focus.
Individual advisers and small practices
Qualified financial planners looking to acquire a client book rather than build one. Typically slower to move and more limited in price, but can offer strong continuity for clients and staff where the right personal fit exists.
ASIC, licensing, and compliance considerations
Financial planning practice sales have specific regulatory dimensions that standard business sales don't. AFSL transfer or authorisation changes require ASIC notification and approval. Buyer due diligence will scrutinise your compliance file, PI insurance history, client complaint records, and Statement of Advice quality in detail.
Having a clean compliance record is not just ethically important — it's a direct valuation driver. Practices with historical compliance issues face real discount pressure, and in some cases, difficulty completing a sale at all. Starting a sale process with your compliance documentation in order is essential.