Centrepoint Alliance seeks M&A opps
Advice licensee Centrepoint Alliance is seeking a corporate adviser to evaluate M&A opportunities as it forecasts an EBITDA of $7.6 million for FY23.
In a statement to the ASX, the firm said it is forecasting an EBITDA of $7.6 million for FY23. This is excluding long-term incentive awards, one-off costs and asset sales.
The figure represents an $0.4 million increase (5.6 per cent) compared to FY22 which the firm said is the result of “improved business performance achieved through operating at scale”.
Centrepoint has 512 advisers operating under its CAF licensee and 200 self-licensed practices supported by 771 advisers, which the firm said ranks it as the third-largest licensee in Australia.
It has further growth ambitions in both organic and inorganic opportunities and has engaged mid-market specialist adviser Allier Capital to evaluate potential M&A opportunities under consideration by the board.
Allier Capital is a Sydney-based corporate adviser offering extensive M&A advisory service across private and public market transactions, capital raisings, corporate development and restructurings.
Last year, Centrepoint was the subject of its own bid from Diverger for a combination of cash and Diverger shares which valued the business at $0.325 per Centrepoint Alliance share by way of a scheme of arrangement.
However, the deal fell through when Centrepoint said the bid “failed to reflect the firm’s strategic value”.
In the ASX statement, Centrepoint said it is also looking to expand its lending business with the launch of Lending as a Service (LaaS) in October 2022, and that 25 firms are participating in the programme with a strong pipeline of additional firms.
“The service has been embraced by advisers seeking to assist clients with their lending needs in the current economic landscape.”
AUTHOR
Laura Dew
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
