Tynan to focus on exiting advisers
Financialplanning groupTynan Mackenziehas embarked on an acquisition trail, primarily targeting adviser practices intent on exiting the industry due to the increased cost and complexity of operating under Financial Services Reform (FSR).
Tynan Mackenzie chief executive Tony Fenning says his group will incorporate several large businesses each with more than $50 million funds under management.
To lead the aggressive approach, the group has appointed Tony Dickin as head of practice mergers and acquisitions. Dickin has 20 years experience in start-ups, mergers and acquisitions.
Fenning says many advisers are being forced to leave the industry due to their age, professional indemnity insurance trouble, FSR legislation and compliance.
However, he believes too many are holding out for a buyer of last resort, which invariably doesn’t exist, or multiples of recurring income that were achievable two years ago but are now “history”.
Tynan is looking to attract some of these businesses by offering advisers value for their practices.
“The payment for a practice will be structured to minimise exposure to tax at the conclusion of the deal,” Fenning says.
The group is also offering continued control of advisers over their business until they leave, platform capabilities and support services, such as tax and estate planning.
Fenning says the business will not buy at random, but instead will look for businesses with quality advisers.
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