Small advice firms seeking mergers with accountancy firms
Struggling small advice firms are increasingly seeking to merge with mid-tier accountancy and advice firms to broaden their potential revenue streams, according to Prosperity Advisers chief executive Allan McKeown.
Prosperity, an accounting and financial planning firm with more than 150 staff and offices in Sydney, Brisbane and Newcastle, has merged with three smaller businesses, the most recent in October 2008, he said.
“We’re receiving some approaches from owner-operators in small advice firms who are looking to get the benefits of broader income streams in difficult times.
“We can offer their client base quite a diverse range of income sources that would help cushion the falling revenues they are experiencing in their sole financial planning channel.
“Accounting advice, mortgage and lending advice, [self-managed super fund] administration, estate planning and salary packaging are among these potential revenue streams,” McKeown said.
In return, he said Prosperity is “not looking to be an exit plan for retiring advisers but, rather, is seeking those with something to offer over the long run”.
Prosperity is also experiencing increasing applications for advice and accountancy positions from the ranks of newly retrenched staff at the big four accountancy firms.
“We’ve been able to pick up some highly skilled new staff as a result of the larger accountancy firms having reduced staff and ceasing hiring in the economic downturn," he said.
Recommended for you
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
