Advice businesses holding $1.1m in unrealised value amid
M&A surge

11 August 2025

CFS 10x has released new research that identifies a significant opportunity for business owners to increase the value of their advice practice amid a heightened period of industry consolidation. 

As part of its ongoing commitment to supporting advisers, CFS 10x partnered with Succession Plus to produce the Hidden Value Report, which identifies how business owners can unlock the full potential of their business by addressing non-financial risks that have the potential to reduce value. 

Based on a survey of 116 advice businesses of various sizes, the report uncovers the value gap in Australian advice businesses – the difference between the current value of an advice business and its potential worth.

"While 85% of advice businesses report being prepared for an unplanned sale, there remains an average value gap of $1.1 million across these businesses,” CFS Group Executive Distribution Bryce Quirk said. 

“This presents a significant opportunity for the industry to enhance business value. With established practices looking to exit, ambitious firms eager to expand, and substantial capital flowing in from non-traditional sources, now is the perfect time to understand and maximize your business's value,” Mr Quirk said. 

The report encourages practice owners to rethink traditional valuation methods, focus on non-financial metrics including staff retention, and ready their business to achieve its full value. 

It found that exit-ready businesses have clearly articulated succession management plans and a low key-person dependence. 

Dr Craig West, Founder and Chairman of Succession Plus, said there are advice practices have a huge opportunity to invest time, effort, and money to grow the equity value of their business.

“This should be a primary focus for any owner,” Dr West said. “Often business owners only think about their costs, revenue, profit and turnover when they consider the value of their business, but there’s so much more to it than that,” he said. 

“They also need to take into account the non-financial aspects because that’s what exposes them to risks and ultimately drives down their value,” he said.

James Mitchell, Senior Manager External Communications, Colonial First State

james.mitchell@cfs.com.au

0413 619 034