Demand still outweighs supply as financial services practice sale prices continue to remain stable towards the end of the year.
Kenyon Partners chief executive, Paul Tynan, said that sellers may have to rethink their strategy over the Christmas break.
“There are still more buyers in the market than sellers. I just don’t understand why some of the old and bold just don’t take some capital off the table,” Mr Tynan told InvestorDaily.
“I get the feeling that people will have a good think over the Christmas break. They’ve got a great opportunity to realise some capital gain on the business,” he said.
He explained that although sale prices have stayed steady due to demand and supply levels, more people are coming into the market, which may tighten prices.
“But the ones that are in demand are, of course, the old-fashioned risk books because they are not affected by markets, and they get good recurring income. Those are things, we’ve just found out, we don’t even need to disclose on the annual [disclosure],” Mr Tynan said.
Kenyon Partners also remains positive on the position of independents, which benefit from greater flexibility in terms of technology development to strengthen their market position.
“The one thing the institutions can’t do, which a small operator can, is move quickly on technology. That’s where smaller players can be very good. And technology is only going to speed up,” Mr Tynan said.
