Yellow Brick Road (YBR) has moved to exit a key part of its wealth business with the company announcing to the Australian Securities Exchange (ASX) today that its wholly-owned subsidiaries Yellow Brick Road Investment Services was being sold to Alex Kean’s INPRO Australia Pty Ltd.
The company said it had entered into a Book Sale and Purchase Agreement whereby INPRO would acquire YBR’s advice service relationships, records and recurring revenues from approximately 150 private clients and their related wealth portfolio.
The announcement aid the purchase price was approximately $425,000 of which around 80 per cent was payable upfront with the balance payable approximately 12 months after completion.
The announcement said the decision to sell the business was based solely on the YBR Wealth Division focusing on the scale that the YBR branch franchisee and VOW broker and adviser network and other platforms could provide.
Commenting on the move, YBR chairman, Mark Bouris said it was extremely important that the diverse individual clients were provided with the best financial service possible and INPRO was in a better position to do this than YBRIS.
He said the YBNRIS was a stand-alone legacy business within the broader YBR Wealth Division and its portfolio did not fit within the operational structure required for a branch and broker focused network.