WHK adds to tuck-ins
WHK Group has boosted its total acquired revenue to $35.1 million following the purchase of another two financial services groups as part of the accounting firm’s tuck-in strategy.
WHK Group has bought New South Wales-based financial services group Todd & Niven and Sydney-based accounting group Krochmalik &Hurwitz. The two new businesses bring WHK Group’s tuck-in acquisitions close to 20 groups in the last eight months.
As part of the new acquisition deals, WHK Group plans to merge both groups with existing member firms.
It is intended that Todd & Niven will merge with existing member firm WHK Darcy Kennedy. The merged business will have 15 principals, 135 staff and annualised revenue of approximately $15 million.
This acquisition is an important strategic step for WHK Darcy Kennedy, consolidating it as the largest firm in the Central West region of NSW, with offices in Dubbo, Wellington, Bathurst, Lithgow, Forbes, West Wyalong and Orange. The transaction is expected to be effective from May 18, 2007, and involves the payment of cash and the issue of approximately 110,000 WHK Group shares.
Meanwhile, Krochmalik & Hurwitz will merge with existing Sydney CBD member firm WHK Greenwoods. The merged business will have 35 principals, approximately 280 staff and annualised revenue in excess of $43 million, further consolidating WHK Greenwoods as one of Australia’s largest mid-market firms.
The transaction is expected to be effective from May 31, 2007, and involves the payment of cash and the issue of approximately 320,000 WHK Group shares. It is intended that the firm will relocate to the offices of WHK Greenwoods on July 1, 2007.
The transactions are consistent with WHK Group’s growth strategy. When completed, the transactions will increase total acquired revenue in the current financial year to approximately $35.1 million (excluding last month’s 30 per cent stake in Next Financial).
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
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.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
