Altus creates $3.5bn firm with second NSW advice merger
Private client advice business Altus Financial has enacted its second merger in two months, merging with a Sydney-based practice to create a combined $3.5 billion firm.
Honan has been in business for over 40 years and brings specialist capabilities across tax, consulting, business, and property advisory and private wealth services. They will continue to operate from their Macquarie Park base, supported by Altus.
The combination of Altus, Honan and Fortunity, which it acquired in August, means the firm now has $3.5 billion in assets under management and 150 staff.
Altus said the deal is part of a “bold strategy” to deliver advice to the private client market, while retaining its employee ownership model.
Commenting to Money Management on the deal, Altus managing director Scott Young said Altus considers three factors when selecting an advice practice for acquisition. These are who are the clients they serve, how they believe advice should be delivered to those clients and the people in the firm.
“In the last 12 months, I’ve had at least 20 conversations with firms so we are trying to be super selective on who we work with. You are trying to filter through what is most important to each firm and what they are willing to compromise on to create a business that focuses on people, profit and clients.
“If you can get those three factors lined up then that is an opportunity you should take advantage of to accelerate and scale the business.”
With Altus’ background as an integrated advice practice offering advice and accountancy, he said it is important to Altus to choose firms who also sit in this arena as it can be difficult to integrate one on its own.
“We’ve been doing this for 30 years and the two firms we acquired do it as well. We believe the way to get the best for each client is to have this integration as it creates a seamless experience for the clients, the parties all act together and there is no distorted messaging.
“But if you are a single service firm and you want to acquire the other part then it can be hard to quickly integrate that as there are subtle differences and cultural clashes to navigate in how the two types of firm operate.”
Neil Honan, managing partner at Honan, said: “Joining Altus allows us to continue this work with greater resources, while remaining guided by the values that have shaped Honan Partners from the very start. It also opens up meaningful opportunities for our people, most of whom have been with us for many years.
“After a careful search for the right partner, we are pleased to have found one in Scott and the Altus team. We’re really excited by what we can do together.”
The deal follows a merger in August between Altus and advisory firm Fortunity to boost its presence on NSW’s Central Coast. Fortunity provides accounting, business advisory, audit, and wealth management services with a focus on personal relationships.
As per the merger, Altus’ Central Coast team has relocated to Fortunity’s Erina office, and all staff maintain their roles to ensure uninterrupted service for clients.
AUTHOR
Laura Dew
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