IMB purchases stake in planning practice

IMB Financial Planning (IMB FP), the joint venture betweenIpacand IMB Limited, has expanded its presence in the planning industry with the acquisition of a majority stake in Canberra based financial planning firm, King Financial Services.

King Financial Services currently has $130 million in funds under management and IMB FP has purchased the stake for an undisclosed figure, which was previously held by Richard Cumper, who made the sale as part of his plans to retire.

IMB Limited chief executive Wayne Morris says while the purchase gives IMB FP a foothold in the ACT market King Financial Services would continue to trade under its current name and as a stand alone business.

Morris says the purchase is consistent with the group’s stated aims of owning a number of financial planning businesses in southern NSW that will feed back into the IMB FP joint venture.

Ipac Securities, the other joint venture partner, chief executive Peeyush Gupta says the purchase follows on from recent growth within Ipac itself after it received a funds injection from venture capital group, UBS Capital, in the middle of last year. It also fits in with the groups strategy of growth through acquisitions.

According to Gupta the purchase brings together two groups who have similar attitudes to Ipac in regards to the building and maintenance of planning groups, as well as the provision of exit strategies for planners seeking to step out of the business.

“Ipac has delivered an exit strategy for this business owner that ensure it is business as usual for clients, minimal disruption for staff and provides a plan for the future of the firm,” Gupta says.

The decision to sell to IMB FP was driven, according to Cumper, by the similarities between King Financial Services and IMB FP, and was also influenced by his long term relationship with Ipac.

“It was not about price alone but rather about achieving the best outcome for all stakeholders, particularly clients and staff. IMB FP will provide the resources to maintain existing client relationships and also invest in the technology and services necessary to grow the firm,” Cumper says.

Cumper’s move comes after 15 years in the planning industry and in his departure Grant Alleyn will take over as managing director of King Financial Services. Alleyn has been in the industry for 10 years and has experience with other firms that were also strategic partners of Ipac.