Plan B takes more of My Adviser
WA-based dealer group Plan B Group Holdings now owns 93 per cent of group My Adviser after fast tracking the acquisition of an additional 59 per cent stake from My Adviser founder and chairman Michael Summers, the group announced.
The total purchase consideration of $1.733 million includes a deferred payment of $0.49 million that is subject to future performance hurdles, according to Plan B chief executive Andrew Black (pictured).
The purchase will be funded from a combination of drawing down against existing bank loan facilities and from Plan B's existing cash reserves, the group stated.
Fast tracking the deal required mutual agreement between the group and Summers, who will now stand down from his role as chairman and retire from all executive functions, Black said.
According to Plan B, Summers will work with the business for a transitional period and will continue to be involved in industry associations. Black told Money Management that the arrangements were highly amicable and said if Summers wished to pursue a role within the group as an authorised representative or start his own practice under the My Adviser licence, the group would do what it could to accommodate that.
Plan B will acquire the remaining 7 per cent of My Adviser it does not yet own, currently held by My Adviser managing director Philippa Sheehan, under the same performance hurdle arrangement under which it acquired Summers' share.
My Adviser comprises 62 advisory businesses with 134 Authorised Representatives. It has approximately $1 billion in funds under advice, with practices mostly spread in the eastern seaboard region between Brisbane and Melbourne, with two in Perth, Black said. The acquisition is aimed at strengthening Plan B's presence in the eastern states, he added.
Sheehan said completing the transaction ahead of schedule delivered greater certainty in a changing environment by combining resources with a like-minded organisation. "We're very happy with the direction in which Plan B intends to move and believe that the combined group will benefit both our authorised representatives and their clients," she said.
Recommended for you
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
Estimates for the calendar year 2024 put the advice industry on track for a loss in adviser numbers as exits offset gains from new entrants.
Adviser Ratings shares five ways that financial advice changed in 2024 with an optimistic outlook for 2025, thanks to the Delivering Better Financial Outcomes legislation.
National advice firm Invest Blue has announced several acquisitions, including the purchase of an estate planning and wealth protection business Lambert Group.
