Prime Financial takes stake in accounting firm
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.
Class action filed over grandfathered commissions
Major law firm Slater and Gordon has today filed a class action on behalf of 500...
AFSL forced to shut down robo-advice tool
A Sydney-based licensee has voluntarily shut down two digital advice tools follo...
Closing advice gap on ASIC’s radar for 2020
ASIC chair James Shipton says he is “acutely aware” of the growing shortfall...