Plan B Group Holdings Ltd (Plan B) today announced that it has fast-tracked the acquisition of an additional stake in the Queensland-based My Adviser network.
The purchase increases Plan B’s shareholding in the My Adviser business to 93% and strengthens its foothold in the eastern states. The remaining 7% is held by My Adviser’s Managing Director, Ms Philippa Sheehan, and will be acquired by Plan B subject to My Adviser meeting agreed performance hurdles.
The transaction is a significant growth initiative for Plan B under the leadership of Chief Executive Officer, Mr Andrew Black. An increased presence in the eastern states of Australia has been an important part of that growth strategy.
My Adviser comprises 62 advisory businesses with 134 Authorised Representatives and has approximately $1 billion in funds under advice.
“We’ve always known that My Adviser represented a great opportunity and a strategic fit for us. We share the same fundamental values and client-focused approach,” said Mr Black.
He went on to say that the timing was particularly opportune given the current industry uncertainty in relation to FoFA.
“We’ve been relatively comfortable with the unfolding changes because, in most regards, they align with what we’ve been doing at Plan B for some time. This move gives us the chance to realise operational efficiencies and provide support and benefits for both Plan B and My Adviser” he said.
Philippa Sheehan also welcomed the move. “As far as we are concerned, completing the transaction ahead of schedule has delivered greater certainty in the face of a changing environment by combining resources with a highly respected and like-minded organisation sooner,” she said. “We’re very happy with the direction in which Plan B intends to move and believe that the combined group will benefit both our Authorised Representatives and their clients.”
Sixteen years after establishing My Adviser, Michael Summers said the change in ownership represented an ideal time for him to step down from his current position as Chairman and to retire from all executive functions. Mr Summers is pleased that the company is in the capable hands of the next generation of managers to carry it forward. He will work with the business for a transitional period and will continue to be involved in industry associations.
The total consideration for the purchase of $1.733 million, which includes $0.49 million that is subject to future performance hurdles, will be funded from a combination of drawing down against existing bank loan facilities and from Plan B’s existing cash reserves.
