SYDNEY, AUSTRALIA: Centrepoint Alliance Limited (ASX: CAF) has entered into a binding agreement to acquire 100% ownership of Brisbane based financial advice firm Financial Advice Matters Group Pty Ltd (FAM), a notice said.

Financial Advice Matters Group (FAM) offers clients a full range of financial planning and advice services to approximately 1,450 client households with Funds Under Advice (FUA) in excess of $1 billion. FAM operates 8 offices throughout Queensland and generated revenue of $6.1 million in FY23.

FAM became a corporate authorised representative of CAF subsidiary Alliance Wealth, in 2015. Since then, FAM has grown considerably and has been a strong contributor to the Centrepoint Alliance community.

The acquisition of FAM will add significant revenue to CAF, boost CAF’s team of salaried financial advisers to 19, and create a financial advice group with the scale to further expand in other locations.

Total potential consideration comprises of $10 million cash funded from CAF’s existing cash reserves and newly established $10 million debt facility with National Australia Bank. According to terms,80% of consideration to be paid upfront and remaining 20% subject to deferred incentives and performance hurdles over a 12-month period based on a minimum EBIT contribution of $1.5 million.

Completion is expected by 1 December 2023 (subject to fulfilment of closing conditions).

Commenting on the acquisition of FAM, Centrepoint Alliance’s Chief Executive Officer John Shuttleworth said: “I am delighted by the opportunity this acquisition offers Centrepoint Alliance. It fits with our strategy to accelerate growth by executing targeted acquisitions of high-quality businesses aligned to our strategic framework.

The FAM Team have a proven track record helping many Australians by providing quality financial advice. FAM is a corporatised advice firm with a strong cultural fit with our existing network of financial advisers and has the business systems, processes and operating scale to provide a platform for further expansion of this important segment of the market.”

Darren Smith, Managing Director of Financial Advice Matters Group, commented: “This is an exciting development and reflects the realisation of our vision since joining the Centrepoint group back in 2015 as a corporate authorised representative. Over the last 8 years we have worked closely with the Centrepoint group and there is strong cultural alignment and mutual respect.

The group recognises the cultural strength of what has been built up under the Financial Advice Matters brand and is looking to use it as a platform for further growth.”

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