Prime Financial doubles its corporate advisory business with acquisitions

Special report: Accounting and advisory firm Prime Financial Group has doubled the size of its corporate advisory business and bolstered its ranks with blue-chip experience through its acquisition of Eaton Capital Holdings and CMB Advisory.

The deal comes as a prolonged downturn in corporate advisory fees is breaking.

The first half of 2018 saw the highest local deal volumes in more than a decade and Prime (ASX:PFG) is positioning itself for a larger slice of the pie in the second half.

Prime will now welcome Eaton founder Stephen Moss and partners Peter Bergin and Roger Cameron to their corporate advisory ranks.

The addition of this advisory talent will help meet growing demand for PFG’s corporate advisory services from emerging and mid-market clients.

The team will lead merger and acqusition transactions, assist with divestments and capital raisings and provide guidance and strategic advice to clients.

This new combined division is expected to generate additional revenue of $1 million to $1.5 million.

PFG is paying $250,000 upfront in cash and PFG shares for the businesses, with a majority of the consideration deferred and subject to revenue performance in FY19 and FY20 (to be paid in cash).

Surge in corporate advisory fees

The combined group will move to capitalise on a recent and long-awaited surge in corporate advisory fees.

Australian merger and acquisition activity spiked to $53.7 billion this year — the highest level since May 2007, according to Dealogic.

“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,” said PFG chief Simon Madder.

“This transaction is further proof of our commitment to complete solutions for our clients.”

PFG’s corporate advisory boss Tim Bennett said: “Prime’s existing clients and our broader network of accountant and advisory firm joint venture partners will benefit from this extended capability and team.

“I would like to welcome Stephen, Peter, Roger and Jamie on board at an exciting time when Prime’s Capital Division is expanding.”

This special report is brought to you by Prime Financial Group.

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