Disagreed, it's quite a decent price in my opinion. Prevailing multiples for advisory firms are more like 2-3x Sales, and the typical firm gets ~30% EBITA margins, so we're talking more like 6-9x is fair.
Besides the headline price, entrenchment with the client base will allow them to exercise more influence and cross-sell from other service lines and cost base intiatives such as the outsourced paraplanning and if they execute it, some centrepoint alliance services.
Satisfied with this, low risk and intelligent.
DVR Price at posting:
81.0¢ Sentiment: Buy Disclosure: Held
