Planning firms find strength in scale


|
South Australian advice firms Thornton Group and Tulare Financial Planners have merged their operations.
Listed company DKN Financial Group has a minority stake in both businesses, which specialise in financial planning, investment, self-managed superannuation funds and life insurance services. DKN said the businesses would be enhanced as a result of improved efficiency through scale.
DKN’s statement to the Australian Securities Exchange said its input into the two companies had spanned equity finance, access to “well-priced” financial products and services and strategic business advice, including specific acquisition advice around due diligence, business valuations and transaction structuring.
DKN chief executive Phil Butterworth said his company and its shareholders continue to benefit from profit contributions from minority investments. Butterworth reinforced that DKN’s equity participation businesses such as Thornton and Tulare are in line with its ambitions to grow its footprint through partial acquisitions of wealth management practices.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.