AMP-owned dealer group ipac has acquired South Australian advice firm Intervest Holdings, a $230 million practice in Adelaide.
 
Ipac said its acquisition strategy had resulted in growth in South Australia of $500 million over the past two years to more than $1.2 billion in funds under advice and 54 staff, including 24 advisers.

Intervest Holdings managing director Shane Case said the needs of his clients, staff and shareholders were best served by being part of a larger business.

"It's tough to be a medium-sized advice business in today's marketplace. We had grown beyond a small business, but we were not large enough to benefit from the scale advantage of size," Case said. 

He said the decision to join ipac should not be seen as result of the Future of Financial Advice reforms, but was largely prompted by the different objectives of the business's shareholders.

"We found our shareholders had different motivations," he said.

"There were those who were willing to forgo some profit today to invest for growth, while other shareholders with a shorter time frame wanted to focus on strategies to maximise business value.

"Then there was the issue of who would buy out those shareholders who wanted to unlock their capital earlier than others.

"Too many principals assume that a larger shareholder can find, and is willing to spend, large sums of money to buy out others in the business. Anyone making this assumption should test it, otherwise you might be in for a shock."

Ipac said it expected the current environment would continue to provide acquisition opportunities as firm principals considered their options.