Wealth management firm Prime Financial Group has announced it will secure its largest stake in any one company when it invests further in a Melbourne-based accounting and advice firm.
Prime will increase its holding in MPR Group from 40 per cent to approximately 93 per cent this week, the firm said in a statement. This will be the largest stake Prime has purchased in any one advice firm.
The investment is being made through the issue of new shares by MPR, as well as through Prime's acquisition of existing shares from MPR managing director Matthew Murphy.
As part of the transaction, Mr Murphy will receive $1.35 million in cash, paid over 12 months, plus 13.5 million Prime shares. This leaves Mr Murphy a significant shareholder in Prime, with those shares being escrowed, one third for one year, one third for two years and one third for three years, the statement said.
Mr Murphy will maintain his position as managing director of MPR but will join Prime’s leadership team to assist with the growth of the Prime Accounting Firm investments.
“MPR is a key partner and investment for Prime, and Matthew is an integral part of that business and its future growth ambitions," said Prime managing director and chief executive Simon Madder, on welcoming Mr Murphy to the broader Prime team.
“With the injection of capital into MPR we have a growth target for double-digit revenue growth in the coming years.”
Prime initially invested in MPR in July 2014, purchasing 10 per cent equity, with MPR's annual revenue at that time around $4 million. This has since grown to more than $5.5 million.
All arrangements are expected to be completed early this week, the statement said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 19 Oct 2018Life insurer fires 50, kills outbound sales businessBy James Mitchell
- 19 Oct 2018Strategic plan for AFCA releasedBy Eliot Hastie
- 18 Oct 2018Clique Paraplanning launches practice portalBy Reporter
- 18 Oct 2018Challenger announces new Netwealth dealBy James Mitchell
- 18 Oct 2018Aussies say royal commission won’t change their view of adviceBy James Mitchell
- 18 Oct 2018Hire younger advisers to get younger clients, paper suggestsBy Adrian Flores
- view all