M&A is not a 'scattergun' approach: AZ NGA

Since completing its first-ever deal over a decade ago, AZ NGA has completed more than 200 transactions but each of them carries the same purpose to scaling the advice platform, which isn't a "scattergun" approach, AZ NGA group chief executive Paul Barrett said.

Speaking with Financial Standard, Barrett said there are specific components and criteria that need to be ticked off before a deal can proceed, and only as much as one in 10 deals actually closes.

"There are clear ideas internally on what we're looking for in regard to aspects about client, segment, demography, geography," he explained.

"... we look for growth corridors across regional areas, towns that have the thematics to enable us to grow in those areas. Historically, we've focused on the mass affluent segment, but increasingly, we're moving up towards high-net-worth (HNW) segment."

He said the expanded scope was based on the "real opportunity" to establish a concrete network in the HNW segment as Australians are becoming wealthier.

"We won't invest in businesses that service segments that we don't think we can add value in or grow," he said.

"It's very much a growth mindset. We have specific intelligence behind the scenes around where we will invest and where we won't. It's not just some scattergun approach. It's quite targeted."

He also noted a "power shift" currently taking place across the advice industry, which involves the transitioning from product-led advice to a more holistic and bespoke model.

"... in the advice space, businesses of scale are emerging, and they are putting the advice value proposition and their clients first, not the product proposition," Barrett said.

"You should expect to see the emergence of more advice platforms with capital and large balance sheets adopt this approach... that for me is the big thematic in the industry currently."

The group kicked off the year with a strong start, acquiring a Tasmanian advice business and plotting a regional advice hub through strategic partnerships in NSW.

More recently, it has acquired national advisory firm Intend Financial, adding 10 financial advisers and four locations to its network. It aims to deliver capital, expertise to help scale Intend Financial's continued expansion.

Established in 2021 by the amalgamation of three mature financial planning firms, Intend Financial has offices in Victoria, Queensland and Tasmania and is led by five principal advisers: John Moran, Zach McArthur, Jesse Nihill, Yihsing Koo and Ben Buchanan.

Over the past five years, the business has grown rapidly through M&A and organic activity, AZ NGA said.

Commenting, AZ NGA chief growth officer Chesne Stafford said Intend Financial demonstrated the power of a clear vision, unity and collaboration to build something extremely unique and valuable in a relatively short period of time.

"Advice businesses that want to grow need to scale in order to serve more clients and provide opportunities for employees, and the team at Intend Financial have done a brilliant job of expanding geographically and integrating businesses while continuing to deliver excellent service and advice to clients," she said.

"This is a high-quality business with a loyal, growing client base that is supported by a group of experienced advisers and a knowledgeable team of support staff, making it an ideal business to join AZ NGA and support our rapid expansion strategy."