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Prime Financial acquires stake in advisory firm

Wealth management services provider Prime Financial Group has acquired a 20 per cent stake in accounting and advisory firm MPR Group.

In an ASX announcement on Friday, Prime Financial said the firm now holds a 10 per cent stake in MPR, with the remaining 10 per cent to be transferred to Prime Financial in 18 months.

As part of the deal, the firm will also establish a wealth management entity based on Prime Financial’s client engagement model.

Speaking to ifa sister title AccountantsDaily, Prime Financial managing director and chief executive officer Simon Madder said the firm expects to buy into further firms across Australia.

“At the moment, we are talking to over 60 different firms nationally,” he said. 

This is the first accounting firm deal made in four years by Prime Financial.

Mr Madder said the firm has now reviewed its strategy and is “trying to empower the board and the leadership of firms to go about executing a more ambitious business plan”.

Prime Financial aims to take stakes in other accounting firms within a part-ownership model, he said.

“With ageing demographics of existing owners of accounting firms, we are able to structure solutions where it’s more about supporting and growing the firm rather than trying to take it over or control it,” Mr Madder said.