For many mortgage brokers, the business they’ve built over decades is their most valuable asset. As retirement approaches, maximising its value is essential to ensure a comfortable future and a smooth handover to the next generation of professionals.
Why Value Matters
The higher the value of your brokerage, the more attractive it becomes to buyers — whether they’re colleagues, competitors, or specialist funders. A well‑prepared and managed business can command a premium price and make the transition easier for clients instead of just being sold as a multiple of trail book income.
Steps to Boost Your Brokerage Value
- Maintain Strong Client Relationships
Loyal clients are a major selling point. Keep communication consistent and personalised. Show hoe you have been staying in contact and if possible, statistics of repeat and referral business. - Streamline Operations
Efficient systems and processes make your business easier to run and more appealing to buyers. - Diversify Your Income Streams
Include a mix of upfront commissions, trail income, and ancillary services. Strong business to business referral structures will make your business worth more than just business referred through your personal relationships. - Keep Compliance in Check
Ensure all licensing, training, and regulatory requirements are up to date. This is essential as people will not want to buy a headache. - Understand Your Trail Book
Risk of Claw backs and the runoff decrease the value of the book. Monitor your trail book to see how much business is lost compared to internal refinancing or sale / buy transactions. Talking to Specialist funders like Australian Business Credit can help you understand how finance can be arranged and what else effects valuations for trail books.
Final Tip
Try to start preparing at least three years before you plan to retire. This gives you time to strengthen your business, increase its value so you can negotiate the best possible sale arrangements.
