Advice groups make strategic acquisitions
Diverger and Count Limited have announced key acquisitions in their continued strategies towards growth and boosting advice capabilities.
Diverger has acquired a 55 per cent stake in Melbourne-based advice firm Atkinson Saynor Private Wealth. This follows its 35 per cent equity interest in McGregor Wealth Management, a Queensland-based practice, in 2022.
The acquisitions come through Diverger’s transitional equity model towards partnering with practices looking to achieve scale, drive future growth, execute a succession plan, or corporatise their business model.
The latest partnership is with an experienced adviser transitioning into a principal role at a successful advice business, explained Diverger chief executive, Nathan Jacobsen.
“Succession challenges when transitioning a successful advice firm to a new principal is a key issue for many. But with an injection of capital, a tailored yet flexible equity model and the support of a like-minded partner, these can be overcome,” Jacobsen said.
David Saynor, who has been named principal at Atkinson Saynor Private Wealth after 20 years with the business, views the acquisition as the start of the next chapter for the business.
He said: “It is exciting to be part of a thriving advice business with a concrete plan for the future and the ability to provide our clients with a generational advice model that can service more Australians moving forward.”
Under Diverger’s flexible transitional equity model, partnerships are made in the short or long-term to provide the right level of support to an advice firm.
Short-term transformation includes an agreement to buy the shareholding back or facilitate onsell to successors in order to exit the shareholders. Long-term holds are available with an agreement on future growth plans if the investment is viable for both parties.
“There are a lot of single shareholder practices in the $1–3 million range with significant growth ambitions but which are constrained by various factors,” Jacobsen added.
“We talk to the principal and map out a pathway to growth and then look at investing capital and resources to support that growth.
“We are passionate advocates for the future of advice to ensure its sustainability so Australians can access financial advice when they need to.”
Meanwhile, Count Limited has acquired a 40 per cent equity position in family business Bruce Edmunds & Associates. Based in Victoria, Bruce Edmunds was established in 1966.
“Bruce Edmunds & Associates has an enviable track record of delivering quality accounting services to clients and we are excited they are joining the Count community,” said Count CEO, Hugh Humphrey.
“This transaction supports our ambitious growth strategy and increases our market share in the accounting sector.”
According to Edmunds managing director, Stephen Edmunds, the partnership decision came down to a strong cultural fit between the businesses.
“Count’s client-centric values and sense of community resonated with us. We are passionate about collaborating with our peers, enabling us to share best practices and we will have greater opportunities to achieve this through Count,” Edmunds stated.
AUTHOR
Rhea Nath
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