Wealth Architects expands national presence with Qld deal
Wealth Architects has acquired a Cairns-based advice practice as it seeks to expand its national advice presence.
The Brisbane-based company has acquired 100 per cent of Fiducia Private Wealth Management, led by principal Danny Maher, which will strengthen its presence in the Queensland city.
This is the second practice it has acquired in Cairns, and the new holding will be merged with its existing practice in the same office.
Chief executive, Callum Mitchener, said the two firms have a similar service offering and client base which made the deal a “no brainer”. With the two practices integrating going forward, he said Wealth Architects was mindful of the culture between the businesses when considering whether to enact the acquisition.
“They are excited about being part of a bigger firm and the brand exposure. Fiducia will also bring across their adviser and support staff, so they will have more scale in the town. The vendor is staying for a short while, and the adviser and support staff will be there for the long term.
“We always look at the value proposition and what each firm is offering with a fine-tooth comb. It can’t be too bespoke as you don’t want the cultures to collide.”
Mitchener previously shared his optimism on advice firms in regional areas, and said the firm is keen to have a presence nationwide. When considering future acquisitions, he said it targets even growth across the country rather than being consolidated in one specific area.
This is Wealth Architect’s 17th acquisition since it was founded in 2013 and it believes it will be able to successfully continue this growth. The rise of private equity targeting Australian financial advice firms means valuations have gone up but “only slightly”, he said, and the firm is still able to find opportunities at attractive prices.
“Wealth Architects has a desire to not only have a presence in the capital cities of Australia, but also in large cities and regions such as Cairns. We will continue on our strategy or solid organic growth, in addition to acquisitions when the right opportunities present themselves. Our balance sheet is healthy enough to not require bank funding, which is assisting the M&A process immensely.”
Earlier this year, the firm announced Envest Group, part of global independent insurance distribution platform Ardonagh Group, acquired a majority 60 per cent shareholding in the Queensland-based firm. The transaction gives Wealth Architects access to Envest’s broader financial services distribution network, expands the company’s specialist risk advisory division, and provides future growth capital for M&A.
AUTHOR
Laura Dew
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