Since commencing an aggressive expansion strategy by rolling up accounting firms, Kelly Partners (ASX: KPG) has had no shortage of acquisition targets, confirming a new accounting and financial planning business located in Northern Beaches has been added to their New South Wales network.
The Northern Beaches addition continues a quickfire acquisition spree that the accounting Group has undertaken in the past six weeks as their fourth pickup in that small window.
“The acquisition confirms the attractiveness of the Kelly+Partners offer and our PartnerOwner-Driver model to owners of progressive accounting firms,” said Kelly Partners Founder and CEO, Brett Kelly.
“We are excited that with this acquisition, our Northern Beaches office will qualify in their own right as a Top 100 accounting firm. We believe our Northern Beaches office, together with our Pittwater office (launched in January 2021) and our Mona Vale office (that will be launched as part of this transaction), would command a dominant and leading position in the Northern Beaches region.”
The exact purchase price of the Northern Beaches firm was not disclosed but it is expected to contribute $0.9m – $1.3m revenue to Kelly Partners with $110k – $160k NPAT upon integration to the Kelly network.
“Out of our 17 offices, 8 offices now qualify in their own right as a Top 100 accounting firm. We believe that this scale in each location makes our businesses more competitive and sustainable, and more attractive to clients as well as talent,” said Kelly.
In total, Kelly Partners has more than 300 staff across Australia, including 57 partners, who service over 9,500 SME clients
This Northern Beaches acquisition follows the acquisitions of firms in Penrith NSW, Canberra ACT and Carlton VIC over the past six weeks. Between the four, Kelly Partners expects them to contribute $6.0m – $7.9m revenue on an annualised basis in FY22.
For FY21, Kelly Partners reported a 7.5% increase in revenue to $48.9m with NPAT increasing 29.9% to $5.1m.
Under their aggressive growth strategy, the accounting rollup is hoping to surpass $80m in total revenue by FY24.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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