AZ Next Generation Advisory (AZ NGA) has taken a larger stake in ex-AMP advice firm Geographe Financial Group, triggering leadership changes as it prepares for future M&A growth opportunities.
On 2 December, AZ NGA formally acquired AMP’s minority stakes in 16 advice practices for a total of $82.2 million as part of AMP’s exit from the advice sector last year.
Less than a year on, AZ NGA has increased its stake in one of the firms it acquired from AMP – Western Australia-based advice firm Geographe.
Established in 1976, Geographe has a foothold in the south-west region of Western Australia and up through to Perth, with offices in Busselton and Bunbury. With some 16 staff, including five financial advisers and a professional year associate, the firm primarily delivers holistic advice on superannuation, investments, and insurance.
According to AZ NGA, when it acquired AMP’s equity portfolio last year, it already had “ambitions to increase its shareholdings in some firms over time and ultimately become a majority owner”.
As a result of this deal, Bill O’Byrne, the founder of Geographe, will retire, and director Craig Gibson will reduce his involvement in day-to-day operations after almost four decades with the firm to focus exclusively on seeing clients.
Meanwhile, Sean Spencer and Brent O’Byrne – the founder’s son – will be increasing their shareholding in the firm and step into expanded leadership roles.
Although the firm has primarily focused on organic growth since its inception, relying on a steady stream of referrals from existing clients and centres of influence, AZ NGA said its growing interest in Geographe will see M&A become a “bigger part of the firm’s growth strategy going forward”.
Speaking on the announcement, AZ NGA group CEO Paul Barrett said the south-west region of Western Australia is seeing considerable growth, providing a significant opportunity for expansion in the area through M&A.
“We have ambitious plans to grow and add more planners, and also increase our productivity, efficiency and capacity by leveraging the resources, expertise and scale of AZ NGA,” Barrett said.
“We’ve gotten to know the exceptional team at Geographe really well in the past year and they are experts at what they do, and passionate about raising up the next generation of advisers. The firm provides a truly integrated advice service, giving confidence to clients who have a dream for a better and richer life, and we are excited to expand our relationship and assist with the next phase of growth.”
Acknowledging the firm’s ongoing relationship with AZ NGA, Spencer said: “There is significant interest from other firms in joining us. With the support of AZ NGA, we are well-positioned to accelerate our growth and successfully execute our strategic plans.”
