Synchron sale 18 months in the making
Synchron founder and director, Don Trapnell freely admits that he and fellow co-founder John Prossor had been looking for a sale transaction for their business for the past 18 months.
“Synchron has represented something like a life’s work for me so the transaction with WT Financial Group (WTL) is bitter-sweet,” he told Financial Newswire.
Trapnell said that over that 18 month period they had spoken to a number of suitors for the Synchron business but, in the end, it had been the certainty of employment for the Synchron team which had been a factor in choosing to talk turkey with WT Financial Group.
“It gives the staff certainty and it certainly also delivers for the authorised representatives,” he said.
The official statement issued by Synchron quoted Trapnell as saying that WT Financial Group understood the Synchron culture and embraced the same values.
“We thought very carefully about the cultural fit, and we are delighted that the Synchron we all know will continue,” he said.
“This is a pivotal moment in our history, one which will allow us to equip Synchron advisers for an exciting future in financial advice, while also positioning us for growth, and ongoing leadership of the industry as a licensee.”
The Synchron name will remain and all scheduled Synchron events will proceed as planned.
An important element in the transaction is that Trapnell and Prossor will continue with the business “helping support the integration with WTL’s existing operational structure and retention and growth of the existing adviser base”.
However, from Trapnell’s point of view he acknowledges that he now has status as a shareholder in WTL in circumstances where the transaction involves $2,459,879 in cash and a further $1,017,621 by way of the issue of 10,176,219 WTL shares which are escrowed for 24 months.