Accounting network CountPlus has announced that member firm 360 Financial Advantage (360FA) has acquired Kerry Albert & Co, a member of the Count Financial network and the oldest Count member firm in Coffs Harbour region.
360FA will acquire the entire client base of Kerry Albert & Co, excluding the audit fees generated by the practice. Included in the transaction is the Count Coffs Harbour brand.
Principal Kerry Albert, who founded the firm in Coffs Harbour in 1985, will be retained as a consultant, and the existing firm staff of Kerry Albert & Co will be offered roles.
360FA’s Coffs Harbour practice will relocate to the Kerry Albert & Co offices as part of the transaction.
Kerry Albert & Co has revenues of around $1.2 million, with financial planning services now accounting for approximately 30 per cent of total revenue. Consideration for the investment is $1.205 million with 70 per cent to be paid on completion and the balance over two deferred payments.
The transaction is expected to be earnings accretive within the first year.
Matthew Rowe, chief executive officer of CountPlus says the Kerry Albert & Co transaction highlights the focus of the company’s merger and acquisition process.
“CountPlus is focused on investing in high-quality accounting and advice firm partners and this acquisition represents a solid partnership in the Coffs Harbour region,” Mr Rowe said.
The ASX-listed business posted a net profit after tax (NPAT) of $2.6 million for the six months to 31 December 2018, up 8.4 per cent from the prior comparable period and up from the $3.3 million loss incurred in the first-half of 2018.
The EBITA margin of member firms rose to 18 per cent in the first half ended 31 December 2018, up from 15 per cent for the same period a year ago and 12 per cent when the network first commenced its turnaround plan.
According to Mr Rowe, the turnaround strategy, first announced in 2017, is “almost complete”.
“Cultural change is hard. A key learning in this change process is we will only ‘get’ what we accept or tolerate,” said Mr Rowe.
“The improvement in financial results derives in large part from the adherence by our member firms to shared values and non-negotiable team rules.”
Last year, the network announced the acquisition of a minority stake in Victorian-based O’Brien Accountants & Advisors, its first transaction since a change in its business model.
The company currently has equity in 17 member firms across five states in Australia.
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.