Are you tired of chasing lenders, navigating endless hurdles, and fighting to get deals across the line? Feeling burned out or wondering if mortgage broking is where you see yourself long-term? If you’ve been toying with the idea of leaving the industry, now is the time to take action—and it could be the smartest move you’ll make.
In the mortgage broking world, selling a trail book can be a game-changing opportunity. Right now, the market is hotter than ever, and the conditions are stacked in your favour. The demand for quality trail books is soaring, and buyers are willing to pay record-breaking prices.
Let me show you how to turn this moment into a life-changing decision:
Why Now Is the Perfect Time to Sell
- Unprecedented Prices:
Trail books are commanding multiples higher than ever before. With the right preparation, you could achieve a return on your investment that sets you up for financial freedom. - Surging Buyer Demand:
The market is teeming with eager buyers actively seeking high-quality trail books. This strong demand has created a seller’s market—your book could spark a bidding war. - Record-Breaking Sales:
At Trailblazer Finance, we’ve recently helped sellers secure record prices for their books. We have a database of ready-to-buy, pre-funded purchasers who are serious and ready to act. - Competitive Buyers:
Buyers who missed out on previous opportunities are more determined than ever. This pent-up demand can drive up offers, giving you the chance to achieve top dollar.
Key Strategies to Maximise Your Sale Value
- Maintain Accurate Records:
Buyers value clarity and reliability. Document your loan performance, client interactions, and refinances carefully. Show how each refinance fits into a long-term strategy. - Present Strong Analytics:
Visual reports that showcase the strength of your trail book build buyer confidence. Data-backed insights can set your book apart. - Strengthen Client Relationships:
A loyal client base increases your book’s value. Regular, meaningful touchpoints—like birthday greetings—enhance retention and loyalty. - Ensure a Smooth Transition:
Offer to assist the buyer during the handover. Transitioning relationships smoothly increases the perceived value of your book. - Be Transparent:
Build trust by disclosing any potential red flags upfront. Buyers appreciate honesty and are more likely to pay premium prices for trustworthy sellers. - Focus on Retention:
Clients who stay mean a stronger, more attractive book. Invest in retention strategies now to maximise your sale price.
Are You Ready to Make a Change?
- Are you over the constant hurdles and lender negotiations?
- Burned out from the demands of mortgage broking?
- Wondering if you can keep doing this for another year?
- Imagining a future beyond mortgage broking?
If any of these resonate with you, it’s time to explore your options. Selling your trail book could provide the cash flow, freedom, and clarity you need to step into the next chapter of your life.
Trailblazer Finance: Your Partner in Success
Selling a trail book isn’t just a transaction—it’s a strategic process. With Trailblazer Finance, you’ll have the support to navigate every step, from valuation to settlement. Our pre-funded buyer network ensures your book gets the attention and value it deserves.
💡 Find out the value of your trail book with our Free Valuation Calculator click here.
Ready to talk? Let’s organise a call to discuss how we can help you maximise the value of your trail book and take full advantage of today’s market conditions.
Let’s make this your next big move. Reach out today by emailing lauram@trailblazerfinance.com.au
Looking for more insights? Find out more how to take full advantage of today’s market conditions here. Reach out to us today to see how we can help you maximise the value of your trail book.
Book a call to discuss further.
Acquiring a trail book or business can be a rewarding investment opportunity, but it requires careful planning and diligence. By understanding the high-level steps involved in the acquisition process and the potential timeline, you can navigate the journey more effectively and minimise risks along the way. Whether you’re a seasoned investor or a newcomer to the field, comprehending the acquisition timeline is imperative for ensuring a smooth and prosperous transaction. If you need help, the experts, TrailBlazer, are always on hand.
In this blog, we’ll delineate the high-level steps involved in acquiring a trail book, offering professional insights into the timeline and potential challenges that may arise along the journey.
Step 1: Identifying the target
The journey begins with identifying the target asset – whether it’s a trail book, business, or company. This involves entering into a commercial agreement for the acquisition. However, keep in mind that this step is often subject to subsequent stages, such as due diligence or obtaining funding.
Step 2: Due diligence or obtain funding
Step two may involve conducting due diligence or securing funding for the acquisition. Due diligence is critical for assessing the target’s financial health, potential risks, and compliance with regulations. It’s also essential to address any outstanding issues, such as removing existing security or resolving legal matters before proceeding further.
Step 3: Legal contract stage
Once due diligence is complete and any necessary funding secured, the next step is the legal contract stage. This involves drafting or reviewing legal documentation to reflect the commercial terms of the transaction. Working with specialist advisors or lawyers can ensure that the contract provides the necessary protections, including warranties and indemnities.
Step 4: Settlement stage
The settlement stage marks the actual transfer of ownership. Any issues identified during due diligence are addressed, and final preparations are made for the transaction. This may include preparing necessary documentation, meeting with clients or staff, and finalising payment arrangements. Settlement can vary depending on the nature of the assets involved, but it typically involves the transfer of funds once legal requirements are met.
Step 5: Handover
After settlement, the focus shifts to post-settlement activities, including the handover process. This may involve transitional consultations with the vendor to ensure a smooth transition of ownership. Collaboration and cooperation between the parties are essential during this phase to address any remaining concerns or facilitate a seamless handover.
While deals can sometimes be rushed through, especially if they are straightforward and the parties are experienced, attempting to expedite the process without proper preparation can lead to complications and delays. Transactions involving third parties, such as aggregators, franchisors, or legal and financial advisors, may take longer to finalise.
It’s important to recognise that the acquisition timeline can vary significantly based on various factors, including the complexity of the transaction, regulatory requirements, and the cooperation of all parties involved. While some transactions may be completed in a matter of weeks, others may take several months to finalise.
Ensure to seek expert guidance when necessary and approach the process with diligence and patience to guarantee a favourable outcome. For finance professionals gearing up for an acquisition, our team provides discreet consultations customised to your specific needs. Alternatively, delve into our extensive eBook, “Acquisition Ready,” to delve deeper into the acquisition process and arm yourself with indispensable knowledge for achieving success.
Navigating the process of buying or selling a mortgage trail book doesn’t have to be overwhelming. To streamline the process and enhance the certainty of a successful sale, consider these top 10 golden rules.
1. Identify Approval Requirements Early
Determine early on which approvals are needed from key stakeholders, including directors of the selling entity and the trail book’s owner. This proactive approach will set the stage for a smoother transaction.
2. Understand Your Duties Under the Aggregation or Licensee Agreement
Before finalising the sale, confirm your obligations under the aggregation/licensee agreement, as the sale often depends on aggregator approval. Knowing these requirements in advance will help avoid delays.
3. Clarify Included Clients
Ensure you have a clear understanding of which client files are part of the sale. A well-documented client database is crucial, so review the records carefully before proceeding.
4. Draft a Comprehensive Deed of Assignment
Create a Memorandum of Agreement or Heads of Agreement outlining key terms before engaging legal services to draft the Deed of Assignment. This preparation can save both time and money by addressing essential terms upfront.
5. Obtain an Independent Valuation
Book valuations are complex and influenced by various factors. To achieve the best sale price or mitigate purchase risks, consider getting an independent valuation. Trailblazer Finance offers expert valuation services to help you accurately assess the value of your book.
6. Identify Loan Originators
Ensure you know who wrote the loans being bought or sold. Implement strong agreements with employees and contractors to prevent client poaching and protect your newly acquired asset.
7. Negotiate Clawback Costs and Retention
Discuss and agree on how future clawbacks will be handled and what retention forms part of the consideration. Addressing this issue early in negotiations is crucial for setting a fair purchase price.
8. Understand Paperwork and Fees
Be aware of the paperwork and fees involved in the transfer process. Consult with the aggregator about associated costs and approvals to ensure a smooth transaction and to allocate responsibilities between buyer and seller.
9. Determine Required Insurance
Ensure the vendor provides run-off PI insurance cover if exiting the industry. Agree on the coverage amount and duration in advance to meet any aggregator or funder requirements.
10. Choose Your Advisors Wisely
If you’re new to the trail book market, seek the assistance of experienced advisors. Their expertise can guide you through the process or manage it from start to finish.
To get started on the right foot, use Trailblazer Finance’s free trail book valuation calculator to estimate the value of your book. For more personalised advice and expert guidance, contact our team at 1300 139 003. Our professionals are here to ensure a successful buying or selling experience
In the arena of acquisitions, mistakes can be costly and detrimental to the success of the transaction. At Trailblazer Finance, we’ve witnessed a multitude of errors over the years, ranging from avoidable missteps to unforeseen challenges. These mistakes often fall into distinct categories, but with the right approach and expert guidance, they can be navigated effectively. Let’s explore the most common pitfalls and how Trailblazer Finance can assist you through each stage of the acquisition process.
1. Poor Due Diligence
One of the primary mistakes we’ve observed is the failure to conduct thorough due diligence. Without a comprehensive understanding of the target asset, subsequent actions may be based on incomplete or inaccurate information, leading to unfavourable outcomes. At Trailblazer Finance, our team emphasises the importance of meticulous due diligence, ensuring that our clients have a clear picture of the opportunities and risks associated with the acquisition.
2. Inappropriate Restraints
Inadequate or absent restraints from the vendor can pose significant challenges post-acquisition. Without appropriate safeguards in place, vendors may seek to undermine the integrity of the acquired business, jeopardising client relationships and revenue streams. Trailblazer Finance assists clients in negotiating and implementing robust restraints to protect their investments and uphold the integrity of the acquired entity.
3. Ineffective Legal Contracts
Legal contracts that fail to confer clear title or are overly vague can create uncertainty and render agreements unenforceable. This leaves purchasers vulnerable and without recourse in the event of disputes or breaches. Our team at Trailblazer Finance ensures that legal contracts are meticulously drafted, providing our clients with the necessary protections and legal clarity throughout the acquisition process.
4. Clawbacks
Failure to account for clawback provisions, particularly in mortgage trail books, can result in significant financial losses for purchasers. Without appropriate safeguards in place, purchasers may find themselves liable for clawback repayments, further exacerbating the impact of lost revenue. Trailblazer Finance advises clients on mitigating the risks associated with clawbacks, ensuring that contractual agreements adequately address these provisions.
5. Misunderstanding Client Relationships
Understanding the origins of client relationships is paramount in acquisitions, particularly when key staff members hold significant client portfolios. Failure to recognise and address potential client retention risks can lead to post-acquisition challenges and revenue loss. Trailblazer Finance provides strategic guidance to help clients navigate client relationship dynamics and mitigate potential risks associated with staff turnover.
While acquisitions present lucrative opportunities, they also entail inherent risks and complexities. By engaging with Trailblazer Finance, clients can benefit from our expertise and guidance throughout the acquisition process. From conducting thorough due diligence to negotiating robust legal agreements, we are committed to helping our clients avoid common pitfalls and achieve successful outcomes in their acquisitions.
Reach out to the experts to discuss your financial needs. Call us now 1300 139 003
Download our free eBook Acquisition Ready covering 10 topics that have been specifically chosen because it covers an area that is absolutely essential for a successful acquisition but often overlooked or poorly understood.
At Trailblazer Finance, we’re excited to unveil our latest innovation – the Space Shuttle Loan. This new product is a significant addition to our portfolio, reflecting our commitment to providing innovative financial solutions tailored to the needs of brokers and other professionals in the financial services industry.
The Trailblazer Finance Journey
Trailblazer Finance has built a strong reputation in the financial industry through our diverse range of products and services. We facilitate the buying and selling of trail books, provide loans to support these transactions, and offer comprehensive valuation services for businesses. Additionally, our advisory services help clients navigate mergers, acquisitions, and corporate restructuring, leveraging our deep industry expertise.
Our Suite of Loan Products Includes:
Vanilla Loan: A straightforward, no-frills term loan.
Flexible Drawdown Facility: Allows staged funding withdrawals.
Simple Facility Loan: For agreed drawdown amounts.
Premier Loan: Long-term amortisation for established brokerages.
Balloon Booster Loan: Features a balloon payment at the end.
Participation Loan: We become silent partners with no set repayment.
For 13 years, we’ve focused on lending to mortgage brokers, financial planners, accountants, and professionals with recurring cash flow. However, the Space Shuttle Loan marks a new chapter for us, offering unprecedented terms and opportunities.
The launch of the Space Shuttle Loan
The Space Shuttle Loan is designed to meet the evolving needs of businesses by offering extended terms, competitive interest rates, and higher borrowing limits. Here’s what makes this product unique:
- Extended Term: The first business loan with a term of up to 30 years.
- Competitive Rates: Lower interest rates compared to our other products.
- Higher Borrowing Limit: Borrow up to $6.5 million.
How It Works
The Space Shuttle Loan is ideal for businesses looking to diversify, expand, or acquire new assets. Here’s a breakdown of the application and approval process:
- Inquiry: Contact us via phone or email to discuss your suitability.
- Online Application: Complete a detailed loan application.
- Valuation: We conduct valuations on your trail book, business, and property.
- Consultation: We discuss your business performance and potential.
- Loan Offer: Receive a verbal loan offer followed by a formal letter of offer.
- Legal Agreements: Finalize legal documentation.
- Settlement: Complete the loan process within 4-8 weeks.
Key Benefits
– Increased Borrowing Power: Enhanced borrowing capacity with competitive terms.
– Cash Flow Protection: Flat monthly repayments with an initial interest-only period on the property component.
– Flexibility: Use the loan for expansion, diversification, acquisition, or retirement capital.
Why the Name Space Shuttle?
Similar to the space shuttle, our loan provides an initial boost with significant borrowing power, followed by a streamlined repayment structure. The loan splits into two parts:
– Property Loan: Interest-only for the first five years.
– Business Loan: Principal and interest payments over the first five years.
After five years, the business loan is repaid, leaving a competitively priced, long-term property loan.
Do I Qualify?
You need an ABN, GST registration, and a minimum of two years in business to qualify. We will also review your credit file and require directors’ guarantees and property as collateral. Our online application process respects your credit file’s integrity, requiring business statements for the past two years.
Join Us on This Exciting Journey
The Space Shuttle Loan is poised to revolutionise business financing. We invite you to explore this opportunity and see how it can elevate your business. Book your 20 minute complementary call to discuss your eligibility.
In the wake of the Covid era, the Australian Taxation Office (ATO) adopted a lenient stance toward small businesses with GST, PAYG tax, and income tax obligations. However, the ABC recently reported that this period of leniency has come to a screaming halt and the ATO is now aggressively pursuing small businesses that owe tax debt, implementing stringent debt collection measures and shutting down businesses unable to comply.
The Current Situation
Rob Heferen, the new commissioner of the Australian Taxation Office, recently highlighted the severity of the issue. According to ABC News, small businesses collectively owe the ATO about $24 billion relating to their business activity statements (BAS). Heferen expressed concern over the growing trend of businesses falling behind on these payments, noting, “We are seeing an increasing number of businesses fall behind on these types of payments, from which point it is very difficult for businesses to get back on top of their obligations and remain viable.”
The numbers are alarming. Small businesses account for 65% of all collectable debt owed to the ATO, which amounts to $32.5 billion. Over the past four years, the total collectable debt, from businesses and individuals, has surged from $26.5 billion in June 2019 to $50.2 billion in June 2023 — an 89 percent increase. This sharp rise highlights the escalating pressures on small businesses across the country.
Aggressive Debt Collection
In response to the mounting debt, the ATO has intensified its debt collection efforts. Businesses with unpaid tax debts face the risk of being shut down if they fail to settle their obligations. The ATO’s hardline approach is a stark contrast to the leniency shown during the pandemic, and it serves as a brutal wake-up call for small business owners.
While the ATO is offering payment plans to help businesses manage their tax debts, these plans aren’t a get out of jail card and currently carry a general interest charge of 11.36%. Not only are you paying a high interest rate, these loans also have short repayment terms so your monthly payments can be astronomical. For many, meeting these repayment conditions may prove to be an insurmountable challenge, potentially crippling their operations.
What Can Businesses Do?
We reached out to Antony Resnick, insolvency expert and partner at DVT Group to get his thoughts on what businesses can do if they are burdened by ATO debt. He cautioned not to drown in the sea of debt but to raise your hand and ask for help. Companies that lodge their BASs but do not have the money to pay their bill are far better off from a personal liability standpoint than those who don’t lodge and don’t pay.
One option for businesses is to refinance the ATO debt through private lenders. TrailBlazer Finance is one of the few lenders willing and able to step up to the plate offering refinancing options that allow businesses to spread out repayments over five years, providing much-needed cash flow to continue operating and growing.
Take the First Step Toward Tax Debt Relief
If you’ve got ATO debt to pay don’t ignore it, raise your hand and ask for help. We understand the pressures small businesses face and are here to help you find a solution that fits your unique situation. We invite you to set up a complimentary call with our experienced team to discuss your specific circumstances and explore how our refinancing options can help you. Reach out to us today at 1300 139 003 to clear the decks and get square with the ATO.
Understanding the factors influencing trail book valuations is not just important but pivotal for making well-informed decisions in the acquisition process. These valuations encapsulate a complex interplay of multifaceted variables that can significantly impact the value and viability of an acquisition. Determining the factors influencing trail book valuations is crucial for making informed decisions. TrailBlazer Finance can help you understand the intricacies of trail book pricing across various sectors:
Mortgage Trail Books
Historically, mortgage trail books have traded at multiples ranging from 1.5X to 3X annual trail revenue. However, pricing varies significantly based on the quality of the asset. Just like buying a used car, factors such as client retention, revenue consistency, and asset quality play pivotal roles in determining the price. It’s essential to conduct external valuations to accurately assess the value of the asset being acquired.
Financial Planning Books
The valuation of financial planning books is typically based on a multiple of annualised recurring revenue (CSR), with historical norms around 3X. However, market sophistication has led to variations in pricing based on revenue streams, client base stickiness, and service offerings. Conducting detailed valuations and analysing revenue breakdowns are essential steps in determining the fair price for financial planning books.
Real Estate Rent Rolls
Rent rolls, representing real estate rentals, typically trade within the range of 2.5 to 3.5 times annual revenue. Factors such as client retention, vacancy rates, and rental reliability influence pricing. The focus is primarily on management fees and the quality of underlying properties.
Accounting Practices
Accounting practices are usually valued at 0.8 to 1.2 times annualised revenues, with considerations for achievable EBITDA. Client base stickiness, service availability, and eligibility of potential acquirers significantly impact pricing. Conducting thorough due diligence is essential to accurately assess the potential value of accounting practices.
Navigating trail book acquisitions requires a nuanced understanding of market dynamics and valuation principles.
Taking into account elements such as asset quality, revenue streams, and client retention empowers you to make well-informed decisions and negotiate equitable prices. Engaging with experts like TrailBlazer Finance and conducting thorough valuations are indispensable components for a prosperous acquisition journey.
For finance professionals gearing up for an acquisition, our team offers confidential consultations customised to your unique circumstances. Alternatively, immerse yourself in our comprehensive eBook, “Acquisition Ready,” to acquire a deeper comprehension of the acquisition process and arm yourself with invaluable insights for achieving success.
Interested in gaining insights into the crucial aspects of a prosperous acquisition? Our comprehensive eBook, “Acquisition Ready: The 10 Things Finance Professionals Must Cover,” meticulously crafted by our specialist funders, offers valuable guidance to navigate the process effectively. Download today.
Embarking on an acquisition journey entails navigating a maze of legal documentation essential for a successful transaction. Let’s delve into the key legal documents required and their significance in the acquisition process:
2nd Level: Reference ability Checks
Delving deeper, it’s essential to scrutinise the character and reputation of the vendors involved. Conducting reference ability checks by reaching out to business development managers, partnership managers, and individuals associated with the target acquisition provides invaluable insights. Identifying any red flags regarding the vendor’s integrity or reputation is crucial, as acquiring an asset tainted by poor character can prove detrimental to your business. TrailBlazer Finance has numerous methodologies to delve deep.
3rd Level: Legal Searches
Lastly, thorough legal searches are indispensable to ensure a seamless acquisition process. These searches encompass verifying ownership, clearing titles, and identifying any encumbrances or outstanding debts associated with the asset. By meticulously conducting these searches, you safeguard against potential legal entanglements that could impede the acquisition’s success.
Although every acquisition journey may unfold with its own set of nuances, certain foundational principles persistently stand firm. With the expert assistance of TrailBlazer Finance, meticulously addressing these aspects of due diligence empowers you with the optimal opportunity for success in your acquisitions endeavours.
Interested in gaining insights into the crucial aspects of a prosperous acquisition? Our comprehensive eBook, “Acquisition Ready: The 10 Things Finance Professionals Must Cover,” meticulously crafted by our specialist funders, offers valuable guidance to navigate the process effectively. Download today.
In the ever-evolving realm of business expansion, acquisitions emerge as powerful drivers of success. They present a thrilling opportunity to instantly double your business, skipping the lengthy process of organic growth. Through acquisitions, you not only achieve increased scale and efficiency but also gain the freedom to delegate day-to-day operations. Furthermore, your margins, purchasing influence, and market share undergo swift enhancement, marking the dawn of a prosperous new era.
However, the road to successful acquisitions is paved with layers of due diligence. Successful acquisitions hinge on meticulous due diligence across asset valuation, reference ability checks, and legal searches. By prioritising these critical steps and leveraging the expertise of TrailBlazer Finance, you pave the way for transformative growth and prosperity in your business ventures.
1st Level: Asset Valuation Due Diligence
At the outset, it’s imperative to conduct due diligence on the true value of the asset you’re acquiring. Engaging a third-party expert to perform a detailed valuation ensures accuracy and transparency in assessing the asset’s worth and its potential for leveraging. While some may possess the expertise and resources to undertake this task internally, most opt for the objectivity and proficiency offered by external valuers.
2nd Level: Reference ability Checks
Delving deeper, it’s essential to scrutinise the character and reputation of the vendors involved. Conducting reference ability checks by reaching out to business development managers, partnership managers, and individuals associated with the target acquisition provides invaluable insights. Identifying any red flags regarding the vendor’s integrity or reputation is crucial, as acquiring an asset tainted by poor character can prove detrimental to your business. TrailBlazer Finance has numerous methodologies to delve deep.
3rd Level: Legal Searches
Lastly, thorough legal searches are indispensable to ensure a seamless acquisition process. These searches encompass verifying ownership, clearing titles, and identifying any encumbrances or outstanding debts associated with the asset. By meticulously conducting these searches, you safeguard against potential legal entanglements that could impede the acquisition’s success.
Although every acquisition journey may unfold with its own set of nuances, certain foundational principles persistently stand firm. With the expert assistance of TrailBlazer Finance, meticulously addressing these aspects of due diligence empowers you with the optimal opportunity for success in your acquisitions endeavours.
Interested in gaining insights into the crucial aspects of a prosperous acquisition? Our comprehensive eBook, “Acquisition Ready: The 10 Things Finance Professionals Must Cover,” meticulously crafted by our specialist funders, offers valuable guidance to navigate the process effectively. Download today.