In an ASX announcement, Sequoia Financial Group announced plans to grow its adviser numbers within InterPrac and Sequoia Wealth Management to 500 by 2026, adding that it plans to acquire adviser licensing services from sub-scale AFSL providers.
The firm noted that only 40 of the 1,876 AFSL holders have more than 100 advisers, leaving a large cohort to target for acquisition. Looking at its FY24 target, Sequoia said it was aiming for 15 per cent growth in advisers numbers, which would take its total to 380 by the end of the financial year.
Sequoia also said it is looking to increase Sequoia Insurance Brokers through the acquisition of small to mid-size suburban broking firms and Sequoia Family Office through the acquisition of adviser’s customer books and employing specialist advisers in the high-net-worth market.
The firm added that it would also look to acquire legal document providers and integrate them into its SAS model, similar to its additions of Panthercorp and Castle Corp over the last couple of years, while also looking to add SMSF administration customer books.
In its investor presentation, Sequoia said: “For 20+ years Licensee services businesses have been competing on fees in competition with subsidised product provider AFSL holders, in the last 9-12 months as almost all providers have exited, this subsidised price war has abated.
“There is a shortage of advisers in advice, accounting, and SMSF administration to serve a community that is heavily weighted towards an age demographic that can pay for a service and needs assistance in managing their affairs.
“Product providers need to reduce their cost to access the investment community and the Sequoia integrated model can assist such entities do so.”
Sequoia confirmed its FY24 EBITDA financial guidance at $10 million.
“This represents growth of 117 per cent from FY23, after adjusting for the impact of the now divested Morrison’s business,” the business said.
In addition to providing reconfirmed EBITDA guidance for FY24, Sequoia also provided revenue guidance for $130 million, which would be a year-on-year revenue growth of 33 per cent for FY24. It added that this is also after adjusting for the impact of the now-divested Morrison’s business.
