Permanent and Garrisons buy up accounting groups

Permanent TrusteesandGarrisons Accounting Grouphave continued the trend of acquiring accoutancy firms with separate announcements that they have completed the purchase of a number of groups.

Permanent Trustees says it has acquired two accounting practices and will merge them with its existing accounting group, W&D Partners, to form Permanent Business Advisors, a stand alone business within Permanent’s Private Clients division.

“Over the past 18 months we have considered over 50 firms yet we remain cautious in our acquisition strategy and pursue only those firms that fit both our strategic, financial and cultural move,” Permanent managing director Paul Lahiff says.

The formation of Permanent Business Advisors is in line with Permanent’s aims to move from being a traditional trustee company business to a broad-based financial services provider, a situation largely forced on Permanent by the introduction of the Managed Investment Act (MIA).

Permanent Business Advisors will be an eight partner firm with 45 staff and generating more than $4 million in fees. It will offer tax, accounting, audit and business management services to corporates and individuals.

Garrisons Accounting Group has also continued on its buying frenzy with the purchase of Canberra-based accounting firm O’Connor McNamara.

Marking its seventh acquisition, O’Connor McNamara will be incorporated into Garrison’s principal Canberra firm, Duesburys.

Garrisons acquired the firm for $975,000 with a mix of cash, escrow shares and earn-out shares. A further allotment of employee options were also granted at 33.5 cents per share.

Acquired by Challenger in 1999, Garrisons has been open about its plans to consolidate and expand. Other acquisitions include accounting firms Alexander & Specer, Calabro & Partners and Weir and Basedow in Melbourne, Brisbane and Adelaide respectively.

At a general meeting of shareholders in April, Garrisons managing director Kym Weir said the company was aiming to expand its acquisitions and growth now that it had achieved a suitable platform with its first five acquisitions.