Prime Financial Group Ltd (ASX:PFG) has doubled the size of its corporate advisory business by acquiring Eaton Capital Holdings and CMB Advisory.
The acquisitions support the company’s strategic growth strategy, adding four advisors to the Capital Division to serve the growing demand for corporate advisory services.
The new combined division will continue to focus on leading M&A transactions, assisting with divestments and capital raisings and providing advisory services.
Adding revenues of $1.0 to $1.5 million in FY19
The acquisitions are expected to generate additional revenues of $1.0 to $1.5 million in FY19 at an EBITDA margin of 25 to 30%.
Upfront consideration of about $250,000 will be paid for the businesses, with the majority of the consideration deferred and subject to revenue performance in FY19 and FY20.
Prime’s managing director and CEO Simon Madder said: “Prime continues to build out additional capabilities, skills and solutions for business owners, entrepreneurs and businesses throughout their lifecycle from start-up through to growth, succession and sale, this transaction is further proof of our commitment to complete solutions for our clients.”
Integrated wealth management firm
Prime is an integrated accounting, wealth management and capital advisory firm that operates a direct client advice model and a partnership model with accounting and advisory firms.
In the December half of calendar 2017 Prime generated revenue of $11.2 million which was split between wealth management (45%), accounting and business advisory and capital (47%), and equity accounted profit and other (8%).