Countplus buys first Sydney practice
Friday, 3 July 2009 12:05pm
Countplus has bought a 25 per cent stake in St Leonards-based MBT Accounting Services - marking the first purchase of a Sydney-based firm.
Count Financial Limited's wholly owned subsidiary, Countplus Pty Ltd, has settled its tenth acquisition and first Sydney firm through the purchase of a 25 per cent share in MBT Accounting Services.
Based at St Leonards and proximate to North Sydney's CBD district, this accounting and financial planning business has a client mix that includes Australian branches or subsidiaries of multi-national corporations, SMEs, business owners and high net wealth individuals.
MBT does not have any particular sector specialisation. The concentration of its clients include those in the travel, public relations, property development and estates industries.
The business is led by its founding principal and public company director, Peter Barrow, with four other principals whose average age is 38.
MBT has revenue of approximately $4.9 million per annum and has funds under advice of $120 million. The total cost of $856,520 for a 25 per cent interest (including net business assets) was settled with $342,608 in cash and $513,912 in Count shares at a 12.5 per cent discount.
Countplus has an option to buy the remaining 75 per cent of the business on agreed pricing and at its discretion from 1 July 2010.
The consideration was based on a maintainable EBITAP (EBIT after Principal's salaries) of $843,078 which according to Countplus' chief executive, Jeremy Wardell, is reflective of the current subdued business environment and provides a solid starting base for growth to access further incentives under the Countplus buy-out model.
Company release
