Wealth management company SFG Australia (SFGA) has entered into binding agreements to acquire Lachlan Partners (LP), to strengthen its financial advice and wealth management businesses.
Based on the terms of the transaction, which is likely to be effective from 1 March, SFGA will pay $32.2m to LP, with $23m payable on completion, through a mixture of cash and scrip.
Deferred consideration of $9.2m will be paid over three years on the accomplishment of business performance milestones.
The acquisition will boost the acquirer’s capability to synthesize accounting, tax, and business advisory, and Lachlan Partners’ in financial advice and implementation services.
On completion, the deal will also provide nearly $606m in funds under advice to SFGA’s $10.8bn, over 55 accountants and financial advisors to the 109 accountants and advisors in Shadforth Financial Group, and greater operating scale.
Under terms of the deal, LP will retain its brand name and its equity business partners, accountants, advisors and employees will join SFGA, while LP managing director and co-founder will assume positions in SFGA’s executive management team.
Lachlan Partners operates as an integrated accounting, tax, business advisory and financial advice group and serves private companies, professionals, entrepreneurs, family offices, self managed super funds (SMSF), and high net worth clients.