Financial planning groupipac Securitieshas formed its first strategic alliance with an accounting practice after striking a deal with Brisbane-based firm MGI White Hancock.
MGI White Hancock is a mid-sized accountancy firm with four partners – Grant Field, Anthony Smith, Jeff Redshaw and Craig Douglas.
The deal for ipac is through the group’s financial planning subsidiary, Prosperitus, which advises on approximately $100 million for clients.
According to ipac chief executive Peeyush Gupta, the firm’s financial planning business had “reached the capacity of what they can achieve without a corporatised model that would deliver quality advice to their clients in an effective and efficient way”.
Gupta says many accountancy practices are in a similar situation, in terms of having a reasonably sized financial planning business but lacking the specialist resources required to take the business to the next level.
According to Gupta the alliance with ipac will now give Prosperitus access to ipac’s advice tools, platform, business model and other support to build the business, and potentially a long-term succession plan.
Gupta says ipac’s offering provides a succession planning option that is suited to accountancy firms where there are usually multiple shareholders.
“Importantly, the current owners retain operational autonomy so they still call the shots.”
Gupta says from ipac’s perspective, it’s important that their business partners “retain the entrepreneurial spirit that is the lifeblood of successful businesses”.
MGI White Hancock managing partner Grant Field says “we realised we needed a partner with specialist skills in running an advice enterprise if we were to build a substantial financial planning business”.
“We have a business that is already successful through the close relationship it has with our accounting practice. We think it has even greater potential,” Field says.
