In a statement, Sequoia Financial Group said its advice licensee InterPrac had purchased First Option Financial Management, Marshall & Company and Barry Moser Nominees.
The group said the purchases were expected to add approximately $450,000 of annual recurring fee for service income and $300,000 of annual EBITDA, with “a mix of client demographics” included in the businesses.
Sequoia said the total consideration of the three purchases was approximately $1 million, made up of $380,000 in cash and 625,000 Sequoia shares at 45 cents per share, with a final payment of up to $300,000 if the recurring revenue in the client books increased over the first 12 months.
“All three book acquisitions are former authorised representatives of Interprac Financial Planning and this continues the company’s strategy of providing retiring advisers the opportunity to remain a part of our larger group, where they can continue to support clients under our branding,” the group said.
Sequoia said First Option’s John Blangiardo would sign a two-year employment contract with InterPrac following the deal, with an option to extend for another two years.
The anticipated completion date for the purchases was 31 December.
Strange that you don’t publish my comment.
I think we’ve just learned what our businesses are really worth.