Phil Butterworth
Financial services provider DKN Financial Group has taken a minority investment in Queensland-based financial services group UPA Financial Solutions, its sixth equity partnership since May 2005.
The acquisition of a 30 per cent stake in UPA cost approximately $5 million worth of DKN scrip and approximately $1.25 million of zero-priced options subject to the achievement of the 2008 profit forecast.
An additional deferred cash payment will be made in November 2008 of up to $1.3 million, also subject to the achievement of profit hurdles in excess of forecast.
Chief executive Phil Butterworth said DKN would support UPA in its own “acquisition plan based on its unique model for integrating financial planning and accounting businesses, involving a sustainable succession plan for accountants”.
UPA, which employs 32 staff in financial planning, business broking, finance and accounting, claims FUM of more than $100 million and annual turnover of about $5 million.
Last month MW Planning became the fifth independent financial planning practice to partner with DKN since its acquisition strategy was initiated over 18 months ago.
The other firms include three Adelaide-based practices, Goldsborough Financial Services, Thorton Group and Tulare, and Queensland-based firm Quill Group.
