Paul Barrett’s Italian-backed financial planning dealer group play, AZ Next Generation Advisory (AZ NGA) has further extend its footprint with the acquisition of another financial planning practice — this time former Financial Wisdom affiliate, Perth-based Wealthwise.
Barrett has confirmed that in similar fashion to previous transactions, AZ NGA had entered into agreement with the principals of Wealthwise which included a share swap of 49 per cent of Wealthwise’s equity for AZ NGA shares and a progressive buy back of these shares over the next ten years. The remaining 51 per cent stake will be paid to the founding partners in cash.
AZ NGA began its acquisition strategy in May, last year, and Barrett pointed out that this latest transaction followed on from other, similar deals reached with Eureka Whittaker Macnaught, Pride Advice, Lifestyle Financial Planning Services, Financial Lifestyle Partners, Harvest Wealth, Wise Planners and RI Toowoomba, Empowered Financial Partners.
He said it represented a continuation of AZ NGA’s objective of consolidating high quality Australian financial practices providing wealth management services to retail, high net worth and institutional clients in Australia.
Discussing the Wealthwise transaction, Barrett said the business comprised a team of 32 staff including 14 Financial Planners, six para-planners, and nine client service officers and was responsible for $380 million of funds under advice.
Barrett said he believed AZ NGA was on track to achieve its year one target of 12 transactions.
He attributed the success of the company’s strategy to its inherent flexibility and the fact that AZ NGA did not require firms to change their licensee arrangements or product platform offering.
“We are also able to handle a variety of entity structures and enter into very long term arrangements. Our vision is to partner with and invest in quality firms to help them achieve their growth ambitions. To be genuine about this you have to have, capital, know-how, and patience,” Barrett said.
He said AZ NGA had shortlisted a number of financial planning firms for further potential consolidation.
