Countplus, owned by Commonwealth Bank, said that its subsidiary, Advice389, has acquired a 40% stake in a Newcastle-based financial advice practice Hunter Financial for $2.79m.
Countplus CEO Phil Aris said that Advice389 is currently assessing a number of financial advice firms and expects to announce further shared-equity partnerships in the near future.
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Additionally, Countplus had settled transactions with two Countplus member firms, MBA Partnership and Kidmans Partners, for a part equity buy-back.
MBA Partnership’s employees and principals have bought back Countplus’ 40% interest in the business, while Kidmans Partners have taken a 30% stake in the business.
The buy-back agreements come in line with Countplus’ strategy of implementing a shared-equity model with its subsidiary firms, to promote sustainable growth for both Countplus, and its businesses.
Aris said: "Under a shared-equity model, our member firms stay independent, retain branding and keep entrepreneurial control, while ensuring their ability to grow, thanks to the backing of a major listed partner.
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By GlobalDataAris added that the proceeds from the buy-backs ($3.08m) will be used to fund future business growth.
"These include our subsidiary companies Advice389 and Blue789, both of which are tasked with identifying and forming shared-equity partnerships with successful businesses in the financial advice and accounting sectors, to the mutual benefit of both parties.
"It is our view that principals and senior employees have a greater incentive to grow their business when there is close alignment between the success of the business and their personal success, and this is what a shared-equity model achieves," Aris added.
Countplus operates 21 businesses and their subsidiaries across Australia.
