Tim Brown, chief executive of Vow Financial, confirmed the Yellow Brick Road’s (YBR) ASX report regarding market speculation on the company’s acquisition by YBR.
The parties are making exclusive arrangements, with no binding agreements finalised until this time.
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Six weeks after the announcement of the potential unnamed acquisitions of three companies, late on Friday, Richard Shaw chief executive of YBR reported on ASX that nothing has been settled until now on the acquisition of Vow Financial, but they are still in talks with the board of Vow Financial Holdings Pty Ltd.
The ASX report concludes that the company will keep ASX informed of any developments on this issue.
According to Wealth Professional, Richard Shaw said: "Yellow Brick Road Holdings Limited (the Company) is aware of media speculation concerning potential acquisitions by the Company of certain named companies."
"The Company is in discussions with the board of Vow Financial Holdings Pty Limited. At this time, no binding agreement has been entered into, other than the parties being in exclusive arrangements," he said.
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By GlobalDataAustralian Broker, the sister publication of Wealth Professional reported Tim Brown as saying that the company was in discussions with YBR, but declined to disclose any details.
"Any business looking to consolidate or merge is looking for scale – with it comes better rates, better commissions, all the better opportunities that come with being a bigger business."
In the March quarterly results, announced last week, Matt Lawler chief executive of YBR said that the main focus of the quarter had been to branch along with client activity, and progressing acquisitions.
The company is still operating at a loss, in spite of its first major digital campaign with a net deficit of $1.11m, a 17% improvement on the previous quarter.
"When we started Yellow Brick Road, the pundits said we couldn’t make a wealth adviser out of a mortgage broker," said Bouris.
"Yet, here we are with the intellectual property to recruit, train and accredit individuals to provide the full spectrum of advice."
The acquisition of Vow is expected to boost the YBR current share price, after finalisation.
