CountPlus member firm AdviceCo has acquired the accounting revenues of boutique advice firm Arch Capital.
The deal was termed as a tuck-in acquisition.
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Deal details
The deal consideration of $400,000 will be paid in instalments.
The acquirer will pay 65% of the deal amount upon closing.
The remainder will be paid based on recurring revenues over two 12-month periods after closing.
Commenting on the deal, AdviceCo managing principal David Evers said: “Our due diligence revealed Arch Capital to have a quality client base, which will bolster the account fee base of AdviceCo.”
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By GlobalDataThe acquirer anticipates the deal to add to its earnings in the first year.
AdviceCo will finance the transaction using existing liquidity.
The acquisition is said to provide “additional scale for only modest incremental costs”.
CountPlus CEO and director Matthew Rowe said: “The Arch Capital transaction highlights the ability of CountPlus member firms to identify and acquire tuck-in opportunities.”
Arch Capital provides tax, accounting and wealth planning advice services.
The business was set up in 2012 by Nigel Baker.
AdviceCo was previously known as Robson Partners.
This January, the firm announced new principals, namely senior financial planner Christine Hallowes and senior accountant Debbie Bloffwitch.
The pair join David Evers, Troy Marchant, Gerard Andrews, Steve Walker and CountPlus as shareholders of AdviceCo.
Earlier this year, CountPlus member firm CountPlus One bought the financial planning services of Sydney-based Centenary Financial.
As part of the deal, CountPlus One absorbed the key employees and clients of the acquired entity.
This deal was also called a tuck-in acquisition.
