Centrepoint Alliance acquires $1bn Qld advice firm

centrepoint alliance M&A

9 November 2023
| By Laura Dew |
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Centrepoint Alliance has acquired Brisbane financial advice firm Financial Advice Matters (FAM).

In a statement to the ASX, the licensee said it has entered into a binding agreement to acquire 100 per cent of FAM.

FAM offers a range of financial planning and advice services to over 1,450 clients with funds under advice in excess of $1 billion. It operates eight offices throughout Queensland and generates revenue of $6.1 million. 

It is already a corporate authorised representative of Centrepoint Alliance’s subsidiary Alliance Wealth since 2015.

Centrepoint Alliance said the acquisition “will add significant revenue to CAF, boost CAF’s team of salaried financial advisers to 19 and create a financial advice group with scale to further expand in other locations”. 

The total potential consideration is $10 million in cash funded from Centrepoint Alliance’s cash reserves and a newly-established $10 million debt facility with National Australia Bank. Some 80 per cent will be paid upfront and the remaining 20 per cent will be paid subject to deferred incentives and performance hurdles over a 12-month period.

John Shuttleworth, Centrepoint Alliance chief executive, said: “I am delighted by the opportunity this acquisition offers Centrepoint Alliance. It fits with our strategy to accelerate growth by executing targeted acquisitions of high-quality businesses aligned to our strategic framework.

“The FAM team have a proven track record helping many Australians by providing quality financial advice. FAM is a corporatised advice firm with a strong cultural fit with our existing network of financial advisers and has the business systems, processes and operating scale to provide a platform for further expansion of this important segment of the market.”
 

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Submitted by Duke Nukem on Thu, 2023-11-09 09:13

So John will work to recreate the vertical integration Westpac model that worked so well.

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