DKN continues minor stake strategy
Listed planning business DKN Financial Group says its part acquisition of financial planning firm Goldsborough Financial Services for $2.35 million maintains its strategy to buy into businesses that need help to expand but want to keep their own dealership licence.
Although remaining tight lipped on the precise quantity of Goldsborough that was purchased, DKN chief operating officer Phil Butterworth said DKN picked up somewhere between 20 and 49 per cent of the Adelaide-based group, which has six financial planners, 2,400 clients and has $300 million in funds under management.
DKN will encourage succeeding Goldsbourgh advisers to take an equity stake in the practice by providing them with a five year $2.35 million loan at commercial interest rates.
Goldsbourgh advisers will also be offered a total of 400,000 unlisted options to subscribe for fully paid ordinary DKN shares.
“A key part of our business is supporting successful practices that have their own license and don’t want to be aligned to an institution. Our acquisition strategy is to support groups that are on a growth path that need capital funding to grow by acquisition,” said Butterworth.
DKN first signalled that it was on the acquisitions path last November at its annual general meeting. Since then it has also offered a minority equity and support package to two planning practices in southern Queensland aligned with the Quill Group Business Accountants.
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
