SFG Australia (SFGA) has entered into a binding agreement to acquire wealth management and accountancy group Lachlan Partners, adding 55 advisers and accountants to SFGA’s existing 109 representatives.
The move also adds approximately $606 million in funds under advice (FUA) to SFGA’s $10.8 billion in FUA, and will be effective from 1 March.
Lachlan Partners is an integrated accounting, tax, financial advisory and business advisory group based in Melbourne, Brisbane and Sydney.
SFGA will pay Lachlan Partners $32.3 million via a combination of cash and scrip with a further $23 million payable on completion. A deferred consideration of $9.2 million is payable over three years subject to certain performance milestones.
In a statement, SFG said the move “significantly enhances SFGA’s capability to synthesise accounting, tax, and business advisory, and Lachlan Partners in financial advice and implementation solutions”.
It also enhances the group’s exposure to self-managed super fund (SMSF) clients, with Lachlan Partners administering approximately 450 SMSFs, and SFGA providing advice to more than 2,000 SMSF clients, according to the statement.
Lachlan Partners’ business partners, accountants, advisers and employees will remain with Lachlan Partners and join SFGA and Lachlan Partners co-founder and managing director Philip Pezzi will join the SFGA executive management team.
The Lachlan Partners brand will remain the same and “there will be minimal changes to the day to day operations of the client-facing businesses of Lachlan Partners,” the statement read.
“We have held the view for some time that the services required of financial advisers and accountants as trusted advisers to high net worth client families are converging, but that they remain distinct underlying skill sets,” said SFG chief operating officer John Cowan.
“We think this trend has accelerated with the continued growth of SMSFs and efforts by the industry to improve the efficiency of SMSF administration, as well as portfolio solutions to meet a SMSF client’s needs.”
Mr Cowan said SFGA has been actively reviewing its SMSF administration systems and looking for the right people to partner with.
Mr Pezzi said his team was looking forward to leveraging expertise across a broader group, enhancing services to clients. “It provides the necessary platform to expand our family office presence nationally,” he said.
