Privately-owned financial planning dealer group Avenue Capital Management (Avenue) is looking for an appropriate partner to purchase the business, InvestorDaily has learned.
According to an auditor's assessment received by InvestorDaily, Avenue has 16 branches in Sydney and approximately $1.2 billion in funds under advice.
The fee for service business, which focuses on high net worth and mid tier clients, comprises 32 authorised representatives, 85 per cent who are CFP qualified.
Avenue chairman Stephen Garrett said the dealer group had continually reviewed its strategic growth plan since its inception in 2001.
"One of the options that has been under ongoing consideration is the potential sale of the business to a partner able to take Avenue to the next level," Garrett told InvestorDaily.
He said the group had begun looking for potential buyers in 2007 but put plans on hold during the global financial crisis in order to concentrate on impending legislative changes and to step up operational efficiencies and internal processes.
"Avenue has emerged from the downturn strong, debt free and ready for a new phase of growth. As a result, we now believe the time is right to re-examine the possibility of finding a partner to purchase the business and have engaged professional advisers to assist in the process," Garrett said.
The right partner for Avenue would support the growth and development of the group's member firms while at the same time assist board members, who are all practice principals, in putting more time into the ongoing management and development of their financial planning businesses, he said.
Avenue was in the very early stages of this process and would continue a business-as-usual approach to the day-to-day operations and in providing quality advice to clients, Garrett said.
