Yep this is old news about GENESIS FINANCIAL, INC. COMPLETES ACQUISITION OF BALLAST GROUP AND COSIGHT FINANCIAL LIMITED
New York, July 07, 2020 (GLOBE NEWSWIRE) -- Genesis Financial, Inc., a globally diversified financial services company with a focus on Fintech Investment, Wealth Management and Lending Platforms, today announced that it successfully completed its acquisition of Ballast Holdings Pty Ltd. (Ballast Group) on June 30, 2020.
Ballast operates as a holding entity for its operating subsidiaries: Ballast Accountants Pty Ltd., Ballast Financial Planning Pty Ltd. and Ballast Superannuation Management Pty Ltd. The Ballast Group provides a comprehensive range of accounting and taxation advice and solutions for investors and small- to-medium businesses. Its services include tax planning and structuring, management and cash flow reporting, tax returns and ASIC compliance, including a SMSF specialist practice and can also assist with buying and selling businesses. The Ballast Group also offers finance and mortgage advice services through agreements with various mortgage brokers and aggregators.
The Ballast Group represents $120 million (USD$85 million) in funds under management and has a strong affiliation with its clients long term. Ballast operates a business with high gross margins which have driven an EBITDA for the fiscal year ended June 30, 2020 of AUD$2.05 million (USD$1.45 million) and had over AUD$1.8 million ($1.276 million) cash in hand at June 30, 2020 which will be consolidated into Genesis’s June 30, 2020 balance sheet.
Ballast Group’s key operating areas include:
• Funds management and advisory services;
• Funds administration; and
• Wealth management.
Genesis has also completed the acquisition of Cosight Financial Limited through a share exchange. Cosight holds valuable intellectual property which is expected to allow Genesis to expand it platform of investment management services across all major asset classes, both in Australia and internationally, to a diverse set of institutional clients and to provide the base for expanded portfolio management and financial advisory services primarily catered to institutional clients, such as investment funds, corporations and financial institutions.
Genesis’s acquisition of Ballast and Cosight was funded by a debt facility and by the issuance of Genesis common stock to the stakeholders of Ballast together with deferred cash consideration.
“We believe that our acquisition of the Ballast Group and Cosight will provide our company with a substantially enhanced base from which we can develop a full-service suite of funds management, portfolio management and advisory and dealer network services,” commented Genesis Financial’s Chief Executive Officer, Russell Cameron.
“The additional earnings derived from an increased number of profit centers and planners is expected to position the Company for growth and provide our clients with a truly global perspective. We see the Australian financial market as being secure, stable and operating within a legal framework and we believe that the similarities between the financial planning and portfolio management skills in both regions will enable us to develop an expanding cultural and financial model. We believe that the revenue profile will enable us to consider additional short- and long-term opportunities focused on U.S. enterprises and that the combined acquisitions present a very exciting opportunity for Genesis Financial
