Investor Group has made the first moves in the acquisition ofStockfordbusinesses, purchasing the Stockford Collins Street accounting and financial planning business.
The Collins Street business was purchased for $2 million, with 500,000 Investor Group shares also issued to the Stockford principals joining Investor Group. The business has five principals and approximately 55 staff, with income projected for 2003/04 of around $7 million.
According to Investor Group managing director Kevin White, the Melbourne-based Collins Street business will complement the Sydney CBD operations of Williams Hatchman & Kean (WHK). The Collins Street business will be renamed WHK Carricks for branding purposes.
“Already having a significant regional presence, we wanted to develop a national capital city brand, so this gives us a compatible business in Melbourne, and we have the ability to drive some synergies between the businesses,” White says.
The Collins Street business comprises business services, corporate superannuation, superannuation consulting and wealth management divisions.
The wealth management division currently has funds under advice of around $100 million, and many of its clients have been internally referred and are regarded as high net worth clients, requiring a premium service similar to that of Investor Group’s Prescott brand.
The announcement of the purchase comes on the same day that Investor Group made public its restructure which has resulted in formerBT Financial Groupsenior executive Graeme Fowler being appointed to the newly created position of group chief financial officer and financial services chief executive.
Under the reorganised management structure, both Investor Financial Planning and Prescott Consulting will come under Fowler’s management while Warren Howe will continue as business services chief executive.
