Centrepoint acquires Brighter Super advice business
Centrepoint Alliance has moved to acquire the comprehensive advice review book owned by Brighter Super wholly-owned business, ESI Financial Services.
Centrepoint announced to the Australian Securities Exchange (ASX) that the strategic acquisition would enhance the company’s ability to provide high quality financial advice to a broader client base.
It said Brighter Super had recognised the need to scale its advice offering to provide more comprehensive advice to members and that Centrepoint had been selected as its preferred partner.
The acquisition includes up to 400 customers that will potentially transition, which in total generate annual $1 million in annual revenue.
The announcement said that Centrepoint’s wholly-owned subsidiary, Financial Advice Matters, had been chosen to provide comprehensive advice services to Brighter Super members who require more complex, personalised support.
“The transaction is structured to ensure that only current review customers who agree to transition to FAM by 16 May will be included in the purchase price,” it said.
The purchase is based on a multiple of 1.25 times revenue that is transitioned.
Centrepoint will offer employed to an agreed number of Brighter Super financial advisers through novated employed agreements, depending on the customers who transition.
1.25 buy price is a bit of a joke right????
yep!
Only way to get that 1.25 times back will be to move clients from Brighter Super into their SMA on a platform and rip clients off with an embedded admin fee. Or charge $6,000 for a once off SOA to provide advice to switch from the Balanced Option to the Hi Growth Option. Either way it’s not a good outcome for members or for the Advice industry.