Home / News / Consolidation continues as WT buys Synchron

Consolidation continues as WT buys Synchron

Non-aligned group nears AMP and IOOF in adviser network
News

The financial advisory market is set to have a new leader when measured by financial adviser headcount, with WT Financial Group’s decision to acquire licensee company Synchron set to create the “largest non-institutionally-owned financial adviser network”.

Completion of the deal, which an announcement to the ASX indicated was for consideration of up to $7.96 million, marks another step in the evolution of a long-standing industry player. After being founded in 2010 and listed on the ASX in 2015, WT has emerged from a direct to consumer or retail advice past, to become a leader in licensing, compliance reporting and support for non-aligned financial advisers.

Before the deal the group had 220 registered advisers, or Authorised Representatives, operating 190 practices across the country, a jump from just 42 in 2018. Following the deal, this will increase to 600 advisers and approximately $16 billion in assets under management. Whilst details of the exact revenue multiple paid for the business are scant, the announcement highlights that the ‘goodwill value’ of the deal represents a multiple of just one times revenue or 5.5 times net profit.

  • The group will emerge as the third largest licensee of advisers behind AMP and IOOF, and retain their commitment to deliver risk insurance advice despite growing pressure within the industry. They group has some $25 million in insurance premium sales per annum and continues to believe in the important of improving the underinsurance issue in this country.

    As expected synergies are central to the benefit of the deal, with a $7m earnings contribution and $4 million profit addition expected in 2023 as expenses like professional indemnity, compliance and training can be combined.

    Staff Writer




    Print Article

    Related
    Brokerage platforms can be the link between self-directed investors and advisers: US study

    Brokerage platforms are understandably wary of nudging clients away from their products, but if they want to be full service providers they need to entertain the idea of linking investors to advisers, according to a new US report.

    Staff Writer | 7th Jun 2024 | More
    The Inside Network and Future Proof make waves with Huntington Beach partnership

    It’s the biggest wealth management event on the planet, where advisers, executives and their associates come to learn, network and have a little fun under the California sun. As the inaugural Australian partner, The Inside Network will be front and centre.

    Staff Writer | 10th May 2024 | More
    Perpetual motion curbed: 138-year old manager broken up in $2.2B KKR deal

    The transaction comes after a decade long struggle for one of the bigger players in the Australian financial services landscape, which could only fend off so many takeover attempts while its share price continued to fall.

    Tahn Sharpe | 8th May 2024 | More
    Popular
  • Popular posts: