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Glossary

Trail book multiple

The number a buyer multiplies annualised trail income by to arrive at a purchase price for a trail book; recent Australian sales cluster between 2.5× and 3.5×.

Trail books are priced as a multiple of the trail they currently generate over twelve months. A book earning $100,000 of annual trail sold at 3× changes hands for $300,000. The multiple is the market's shorthand for how long the buyer expects the trail to keep flowing and how much risk sits inside it.

Reported Australian sales through FY2024–25 clustered around 3×, with a working range of 2.5× to 3.5×. Books at the top of that range share traits: run-off under 10%, few loans still inside a clawback window, a spread of lenders rather than concentration in one, low arrears, and clean records that reconcile to the aggregator's statements. Books at the bottom have the opposite profile or come with a seller who is leaving the industry and cannot support the handover.

The multiple is where retention work pays off twice. Every client kept adds to the trail being multiplied and, by lowering run-off, nudges the multiple itself.

Worked example

  • Annualised trail: $72,000
  • At 2.5×: $180,000 · at 3×: $216,000 · at 3.5×: $252,000
  • Same book with run-off halved and trail at $79,000, 3.25×: $256,750

Further reading

Frequently asked questions

Is the multiple applied to gross or net trail?

Usually to the trail the seller actually receives after the aggregator split, because that is what the buyer will receive. Check which figure a buyer is quoting before comparing offers.

Do buyers pay the whole price at settlement?

Often not. Many deals pay a portion upfront and the balance over 12 to 24 months, adjusted for run-off, so the seller shares the risk that clients leave after the sale.

General information only — not credit advice. Figures are indicative estimates and may not reflect your circumstances. Consider seeking advice from a licensed professional before acting on this information.

Last reviewed 05/09/2026 · Not yet verified against lender material