Countplus investee Lawrence Business Management (LBM) has acquired the accounting and financial planning assets of Perth-based accounting firm PG Business Services and PG Wealth Planners (collectively PGB).
The total cost of the acquisition to LBM was $700,000, settled with $560,000 in cash, with the balance payable in LBM equity after one year and subject to client retention provisions.
The LBM equity consideration is valued at $1.54 per share, which “compares favourably” to Countplus’ initial buy-in valuation for its 25 per cent investment in LBM of $1 per share, according to Countplus chief executive Jeremy Wardell.
PGB has billings of $760,000 and will relocate its office and staff, including principal Alan King, to LBM’s Bentley office in Perth.
The consolidation of PGB into LBM’s Bentley office will eliminate a significant part of the overhead costs from the PBG business as well as the under utilised space capacity at LBM’s Bentley office, Wardell said.
