North West Sydney-based financial planning practice Parkside InvestorPlus Solutions has joined Ipac Securities as an equity partner to fund the exit of a shareholder who wanted to sell before the other two principals.
The $200 million advice business boasts a 20-year history and five financial planners; however, principal Bob Salkeld became ready to unlock his capital before his counterparts, Mark Greaves and Wayne Billington.
Ipac acquired Salkeld’s stake for an undisclosed amount and will take full ownership of the business within 10 years.
The dealer group has provided more than 30 succession solutions to financial planning businesses, ranging from immediate book buys to the purchase of entire businesses over time through equity partnerships.
Ipac head of adviser solutions John Saint said the equity partnership not only provided the retiring shareholder with an exit strategy, it also gave a succession solution to the remaining shareholders.
“There are many advice businesses where the shareholders are at different life stages — if one partner wants to sell his shareholding before the others then someone has to put their hand in their pocket to buy them out or, alternatively, the business will need to take on debt,” he said.
“Ipac’s equity partner program provides the capital to buy out the retiring shareholder and also enables the remaining owners to unlock their value in the business in the future.”
Ipac will work with Parkside InvestorPlus Solutions’ remaining principals to improve the business, where Salkeld will continue to work on a part-time capacity.
