Countplus makes tuck-in investment
Countplus investee Lawrence Business Management (LBM) has acquired the accounting and financial planning assets of Perth-based accounting firm PG Business Services and PG Wealth Planners (collectively PGB).
The total cost of the acquisition to LBM was $700,000, settled with $560,000 in cash, with the balance payable in LBM equity after one year and subject to client retention provisions.
The LBM equity consideration is valued at $1.54 per share, which “compares favourably” to Countplus’ initial buy-in valuation for its 25 per cent investment in LBM of $1 per share, according to Countplus chief executive Jeremy Wardell.
PGB has billings of $760,000 and will relocate its office and staff, including principal Alan King, to LBM’s Bentley office in Perth.
The consolidation of PGB into LBM’s Bentley office will eliminate a significant part of the overhead costs from the PBG business as well as the under utilised space capacity at LBM’s Bentley office, Wardell said.
Recommended for you
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Private market secondaries manager Coller Capital has unveiled a new education platform to improve advisers’ and investors’ understanding of secondaries.
In the run-up to heavy losses expected at the end of the financial year, June has already reported consecutive weeks of adviser losses.
