Dealer group TFS Financial Planning (TFS) has acquired fellow dealer Gowdie Financial Planning to become one of the largest advice businesses in North Queensland.
The acquisition will give TFS about $350 million in funds under advice and boost its staff numbers to 19, including nine advisers.
Under the terms of the acquisition, Gowdie Financial Planning principal Vern Gowdie would continue to work in the business.
Gowdie Financial Planning had $130 million in funds under advice, with eight staff including two advisers.
The price TFS paid for Gowdie Financial Planning was not disclosed.
The common philosophies of TFS and Gowdie's approach to client service, advice and staff development was the key to the purchase, TFS Financial Planning general manager Danny Maher said.
"The combination of the two firms creates a practice without peer in regional Queensland and one that would rank equally with the elite firms in the capital cities," Maher said.
TFS acquired Gowdie through the ipac Equity Partners. ipac holds a 76 per cent stake in TFS with the remainder owned by staff at TFS.
ipac has facilitated similar acquisitions for its associated businesses in Canberra and the Gold Coast in the last year, ipac head of business partnering John Saint said.
"ipac has seen an increase in acquisition opportunities in recent months as some principals reassess their personal goals," Saint said.
"Pressure on the balance sheets of some advice businesses has also led to increased interest from principals who want to unlock capital through ipac's Equity Partner program. We have a number of opportunities to expand our businesses across Australia through acquisition," he said.
ipac has completed 40 acquisitions since 2000.
TFS Financial Planning and Gowdie Financial Planning are both former winners of IFA's Best Practice Awards.
