The investment is part of Prime’s plan to increase the number of combined accounting and advisory investments incorporating wealth management, as reported by InvestorDaily on 2 December 2013.
Speaking to InvestorDaily, Prime Financial Group (PFG) managing director Simon Madder said PFG is currently undergoing due diligence that is expected to be completed within 30 days.
“The investment is a two-partner firm in Melbourne that turns over about $4 million and is keen to grow itself to $7.5 to $8 million in turnover,” Mr Madder said.
“We’ve purchased a 20 per cent equity stake in the business on the accounting front,” he said.
“It is a staggered investment starting with 10 per cent now, and 10 per cent in 18 months.
“As part of that deal, we have become their wealth management partner on a 50:50 equity structure.”
Mr Madder said the business meets PFGs profile as a solid client base and two partners that want to integrate that advice piece into their business.
