DKN continues minor stake strategy
Listed planning business DKN Financial Group says its part acquisition of financial planning firm Goldsborough Financial Services for $2.35 million maintains its strategy to buy into businesses that need help to expand but want to keep their own dealership licence.
Although remaining tight lipped on the precise quantity of Goldsborough that was purchased, DKN chief operating officer Phil Butterworth said DKN picked up somewhere between 20 and 49 per cent of the Adelaide-based group, which has six financial planners, 2,400 clients and has $300 million in funds under management.
DKN will encourage succeeding Goldsbourgh advisers to take an equity stake in the practice by providing them with a five year $2.35 million loan at commercial interest rates.
Goldsbourgh advisers will also be offered a total of 400,000 unlisted options to subscribe for fully paid ordinary DKN shares.
“A key part of our business is supporting successful practices that have their own license and don’t want to be aligned to an institution. Our acquisition strategy is to support groups that are on a growth path that need capital funding to grow by acquisition,” said Butterworth.
DKN first signalled that it was on the acquisitions path last November at its annual general meeting. Since then it has also offered a minority equity and support package to two planning practices in southern Queensland aligned with the Quill Group Business Accountants.
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
Unregistered managed investment scheme operator Chris Marco has been sentenced after being found guilty of 43 fraud charges, receiving the highest sentence imposed by an Australian court regarding an ASIC criminal investigation.
