SFG Australia Limited (SFW) is pleased to announce it has entered into binding agreements to acquire the business of Life Financial Services (Ballarat) Pty Ltd, a financial advice firm, and Spencers Accountants Pty Ltd, a related accountancy firm, both based in Ballarat, Victoria. Life Financial Services Ballarat was formed in 2003, through the merger of two longstanding financial advice firms, Spencers Financial Planning, formed in 1989, and Life Financial Services, formed in 1987. Life Financial Services Ballarat employs five financial advisers providing strategic financial advice services to mass affluent and high net worth clients, and has approximately $167m in funds under advice, of which $152m will be included in the Group’s funds under administration balances.
Spencers was formed in 1987 and provides accountancy services to individuals and small- medium enterprise clients. Spencers has three accounting principals and services approximately 150 client accounting groups. The two firms are related through joint ownership by the principals who have fostered an ongoing, successful referral relationship for the provision of financial advice and accounting services to each discrete client base. The advisers, accountants and support staff of each business will become employees of the Group. The effective date of the transaction will be 1 June 2012, following the required notice period of the existing Australian Financial Services License provider.
SFG’s Managing Director, Mr Tony Fenning, said: “It’s very pleasing to continue to come across quality businesses which are culturally and philosophically a strong fit for the Group, and who can expand our already substantial geographic footprint of adviser offices. Life Financial Services and Spencers also demonstrate the benefits of accountants and financial advisers working together, and we plan to further elevate this strategic imperative across the Group in the future.”
The consideration is to be funded by a combination of the Group’s existing cash and debt facility, and includes upfront and deferred components. The transaction is expected to deliver $3.2m in ongoing net operating revenue on an annualised basis and is expected to be Underlying EPS accretive to the Group in FY13.
Tags: acquisition, Financial Advice, Financial Services, SFG Australia, SFW
