Countplus makes tuck-in investment
Countplus investee Lawrence Business Management (LBM) has acquired the accounting and financial planning assets of Perth-based accounting firm PG Business Services and PG Wealth Planners (collectively PGB).
The total cost of the acquisition to LBM was $700,000, settled with $560,000 in cash, with the balance payable in LBM equity after one year and subject to client retention provisions.
The LBM equity consideration is valued at $1.54 per share, which “compares favourably” to Countplus’ initial buy-in valuation for its 25 per cent investment in LBM of $1 per share, according to Countplus chief executive Jeremy Wardell.
PGB has billings of $760,000 and will relocate its office and staff, including principal Alan King, to LBM’s Bentley office in Perth.
The consolidation of PGB into LBM’s Bentley office will eliminate a significant part of the overhead costs from the PBG business as well as the under utilised space capacity at LBM’s Bentley office, Wardell said.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
