Latest merger has Count Adelaide approaching $10m in revenue

In an ASX announcement on Monday, Count Limited unveiled that Johnston Grocke, an Adelaide-based accounting and financial advice firm, has entered into a binding transaction to merge into Count Adelaide.

Johnston Grocke brings $3.8 million in revenue, around 60 per cent of which is from financial advice. The firm currently has four financial advisers.

According to Count, this merger represents an “important development” for its Adelaide office, with the combined business approaching $10 million in revenue.

This, it said, is particularly notable as the 2023 financial year saw the Count’s Adelaide branch report just $2.8 million in revenue.

“This transaction significantly enhances our service offerings and market presence in South Australia,” the firm said.

“The transaction delivers a step-change in the financial planning business and is consistent with Count’s strategy of creating a national footprint of large, scaled equity partnerships.”

Count currently holds a 45 per cent share of Count Adelaide, however, the group said it will increase that to holding to around 65 per cent from financial year 2026 following expected completion in May.

The merger comes after a period of significant M&A activity for the advice group over the last 18 months.

The headline move for Count last year was the finalisation of its acquisition of Diverger in March, which brought its adviser network to more than 550 at the time.

Initially announced in September 2023, the Diverger deal later went through the Federal Court to gain approval for the scheme of arrangement for its acquisition in February 2024.

Following this, Count’s equity firm, Count Gold Coast, acquired Johnathan Grant Accountants in April, paid for through a combination of cash and shares valued at $1.4 million.

Announced at the same time, Count also invested in Solutions Centric, an Australian company operating out of India providing offshore accounting, tax and SMSF services, to acquire 51 per cent of the business for a total of $4.1 million.

Another Queensland-based professional services and advisory business in which Count owned a 57.6 per cent equity stake, 4Front, acquired the accounting book of MD Yates and Associates for $0.9 million in May last year.

June saw equity partner O’Brian Accountants & Advisors purchase the accounting book of Melbourne-based accounting firm Kaias Phillips for the transaction of $2.1 million.

The last in this string occurred in July with equity partner firm Kidmans Partners acquiring Zanacorp, an integrated accounting and advisory firm in Melbourne for $2.1 million.