The Consolidation Boom: Why Brokers Are Buying Trail Books

The Australian mortgage broking industry is seeing unprecedented consolidation activity. Here's what's driving this trend and how you can participate.

Why Now?

Several factors are creating ideal conditions for acquisitions:

• Baby boomer brokers approaching retirement
• Increased regulatory complexity making solo practice harder
• Trail book valuations stabilizing around 2.5-3x annual trail
• Access to specialized financing like trail book loans

Valuation Fundamentals

When evaluating a trail book acquisition, consider:

• Run-off rate: How quickly is the book declining?
• Average loan age: Newer books have longer remaining value
• Client demographics: Investment clients often refinance more frequently
• Aggregator: Can you retain the trail if you change aggregators?

Financing Your Acquisition

Trail book loans are purpose-built for these transactions. You can borrow against both your existing trail AND the trail you're acquiring, often funding 60-80% of the purchase price.

Interested in buying a trail book? Register as a buyer or get a valuation of your current book.