Sequoia Financial Group has announced the acquisition of one of its long-term providers of legal services, Australian Business Structures Pty Ltd (ABS), for a cash consideration of $2 million through its subsidiary Docscentre Pty Ltd.
According to Sequoia, ABS has been providing a range of proprietary legal documents for more than two decades.
In an ASX announcement on Wednesday, the firm said the acquisition is a “milestone event” for the growth of its professional services division, now with the added capacity to broaden its product offering.
Moreover, it is a “continuation of Sequoia’s focus to deliver high-quality services to the financial planning and accountancy practice marketplace”.
ABS is also expected to deliver additional operating profit (cash) before tax of approximately $500,000 per annum.
Brent Jones, head of professional services at Sequoia, said taking ownership of ABS’s precedents is an important milestone as ABS has been the trusted deed partner to NTAA members since 2004.
Mr Jones added that further streamlining the legal documents business allows Sequoia to continue to build its presence within the accounting and advice industry while continuing to strengthen its margin.
In June, Sequoia acquired and merged the businesses of Castle Corporate and Castle Legal.
The acquisition of the Castle businesses aligns with Sequoia Financial Group’s strategic vision of providing an “extensive range of services to accountants, financial advisers, AFSL holders and lawyers”.
“Our service offerings deliver solutions to those who appreciate the value and timeliness of products, services, and advice acquired through scale and technology platforms,” the firm said.
Meanwhile, it described the Castle businesses as “prominent and reputable firms” specialising in providing accountants, financial advisers, and lawyers comprehensive advice and solutions relating to new and existing companies, trusts and SMSFs.
In line with this, last month Sequoia 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.
