Stockford pays $7.5 million for Deloittes

Accounting and financial planning consolidator Stockford has acquired Deloitte Touche Tohmatsu’s financial advisery business for $7.5 million.

Deloitte Financial Services (DFS) has a high net worth client base made up predominantly of the accountancy firm’s clients and referrals. It has $630 million under advice, including $260 million funds under managerment, and brings Stockford’s total funds under advice to more than $2.8 billion.

Under the terms of the deal, the business will keep the DFS brand and will continue to operate out of Deloitte’s offices in Melbourne, Brisbane, Hobart, Perth, Darwin and Adelaide.

The 29 DFS staff members remain with Melbourne-based Deloitte partner and Deloitte Financial Services chief executive officer Stephen Prendeville, who has become DFS national manager under the new structure.

Deloitte Growth Solutions leader Vince Fitzsimons says the decision to sell DFS follow a strategic review of the business.

Fitzsimons says a number of parties were identified on a selective basis and approached.

“There was a tight list, and we worked through that for a cultural fit,” he says.

Stockford Financial Services general manager Mark Rantall says acquiring quality firms is part of Stockford’s business model. He says DFS is “strategically a good acquisition”.

Rantall is taking an active role working with DFS in the Deloitte offices and says the high net worth target market will continue to be the primary focus for the group.

Rantall says the six month system integration will involve all back end processes including training, compliance, human resources and research.