Countplus has announced its fourth tuck-in acquisition, just weeks after making its ninth core acquisition to date.
Lawrence Business Management (LBM), a Perth-based Countplus investee, has acquired accounting and financial planning business PG Business Services and PG Wealth Planners (collectively PGB).
The total cost of $700,000 was settled with $560,000 in cash and the balance payable in LBM equity after one year, subject to client retention provisions.
The LBM equity consideration is valued at $1.54 per share, which compares favourably with Countplus' initial buy-in valuation for its 25 per cent investment in LBM, of $1 per share.
The PGB office and staff, including principal Alan King, will relocate to LBM's Bentley office in Perth.
"The consolidation of PGB into LBM's Bentley office will eliminate a significant part of the overhead costs from the PBG business, as well as the under-utilised space capacity at LBM's Bentley office," LBM principal Tom Lawrence said.
Together with the quality of PGB's client base and referral sources, it is a win-win for all stakeholders, Lawrence said.
Countplus, the wholly-owned subsidiary of Count Financial, purchased a stake in LBM in November 2007 and has a full acquisition pipeline ready for 2009, Countplus chief executive Jeremy Wardell said.
"We are aiming for another six to eight core acquisitions next year, and plans to publicly list Countplus in 2011 are still on track," Wardell said.
