What price Madison in a crisis?

27 April 2020
| By Mike |
image
image
expand image

How much is a financial planning dealer group worth in middle of a crisis such as COVID-19?

That is the question being asked as financial planners maintain their watch on OneVue’s attempted sale of Madison Financial Group which it flagged as likely to be completed by the end of April or early May.

The company last pointed to its intentions in an announcement to the Australian Securities Exchange (ASX) on 6 April when it said that it was proceeding with the sale of Madison “despite the coronavirus pandemic”.

Madison has been placed on the sales block as a result of the collapse of Sargon, with OneVue looking to protect its financial position in the exercise.

When OneVue called for expressions of interest in the acquisition of Madison it is understood that around five financial planning organisations signalled their intention to pursue further information and Money Management understands that as recently as a week ago two organisations remained in contention.

In late February, OneVue said it had made provision to write down the value of the Sargon receivable from $26 million to $3.9 million.

Money Management understands that a number of financial advisers working within Madison have received overtures from other financial planning groups.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago