Listed wealth management company Prime Financial has taken a 20 per cent stake in a Melbourne-based accounting and advice firm.
The investment is part of Prime’s plan to increase the number of combined accounting and advisory investments incorporating wealth management.
Speaking to ifa, Prime Financial Group (PFG) managing director Simon Madder said PFG is currently undergoing due diligence, expected to be completed within 30 days.
“The investment is a two-partner firm in Melbourne that turns over about $4 million and is keen to grow itself to $7.5 to $8 million in turnover,” Mr Madder said.
“We’ve purchased a 20 per cent equity stake in the business on the accounting front,” he said.
“It is a staggered investment starting with 10 per cent now, and 10 per cent in 18 months.
“As part of that deal, we have become their wealth management partner on a 50:50 equity structure.”
Mr Madder said the business meets PFG's profile as a solid client base and with two partners who want to integrate that advice piece into their business.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 09:36Aussies say royal commission won’t change their view of adviceBy James Mitchell
- 09:36Hire younger advisers to get younger clients, paper suggestsBy Adrian Flores
- 09:36Synchron launches app for adviser developmentBy Reporter
- 17 Oct 2018Private banking has no place for bad advisersBy Eliot Hastie
- 17 Oct 2018CBA admits failure to tackle conflicted adviceBy James Mitchell
- 16 Oct 2018NAB to address advice issues in $314m payoutBy Eliot Hastie
- view all