In a statement to the Australian Securities Exchange today, Crowe Howarth – which rebranded from WHK in July – announced it expects the new agreement to be completed in February, subject to purchaser finance conditions.
“Crowe Howarth has agreed with certain senior financial advisors of its Melbourne based firm for them to acquire a 50 per cent interest in the financial planning, lending and risk insurance operations of that firm,” the statement said.
“The directors believe that a part ownership model where Crowe Howarth holds a significant stake is consistent with industry trends and provides a growth path for its financial services offering in instances where there is limited reliance on internal referrals.”
I wonder if the planners have had an accountant look at the Crowe Horwath offer. I think CH overpaid to acquire its financial planning arm and the stock on the ASX does not inspire me. Its return on equity is very poor.