SFG and WHK in merger talks
SFG Australia has proposed a merger with wealth management and accounting firm WHK Group, only days after announcing a $32.2 million acquisition of Lachlan Partners.
SFG has provided the WHK board with a scrip-based merger proposal, offering WHK shareholders ownership of 42 per cent of the merged group.
"SFG Australia believes that a friendly scrip-based merger with WHK, with shared board and management control, will deliver substantial synergies and unlock significant value for both sets of shareholders," the group said in a statement.
WHK had indicated it would evaluate the proposal and form a view on how to proceed.
The news comes after SFG announced a $32.2 million acquisition of financial planning and accounting group Lachlan Partners late last week.
The acquisition would see SFG broaden its services to its clients, adding 55 of Lachlan's advisers and accountants to the SFG network and a further $606 million in funds under management.
Lachlan Partners offers wealth management, accounting, tax, property and business advisory services to high net worth clients and self-managed super funds, operating in its current form since 2008.
"Our view on the need to provide a broader service synthesising accounting, tax and financial advice to high net worth clients is directing our interest in quality businesses with these skills, such as Lachlan Partners," said SFG Australia managing director Tony Fenning.
The Lachlan Partners brand would remain the same and there will be limited changes to the day-to-day operations of the client-facing business, SFG said.
"We have held the view for some time that the services required of financial advisers and accountants as trusted advisers to high net worth client families are converging, but that they remain distinct underlying skill sets," said SFG chief operating officer John Cowan said.
"We think this trend has accelerated with the continued growth of SMSFs and efforts by the industry to improve the efficiency of SMSF administration, as well as portfolio solutions to meet a SMSF client's needs."
Recommended for you
ASIC has cancelled a Sydney AFSL for failing to pay a $64,000 AFCA determination related to inappropriate advice, which then had to be paid by the CSLR.
A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments for investments.
Inefficient data processes and systems mean advisers are spending over half of their time on product implementation and administration at the expense of clients, according to research.
With the regulator announcing its enforcement focus for 2025 last week, law firm Hall & Wilcox examines the areas which have dropped down the list in priority for the regulator.
