Vow rules out growth by acquisition

by Mackenzie McCarty20 Apr 2012

Vow Financial will pursue only organic growth for now, despite previously indicating it was on the hunt for merger and acquisition partners.

Speaking to Vow Financial brokers in Sydney this week, CEO Tim Brown said that M&A with other groups was not a profitable strategy at this point, and the group had decided to grow organically.

As a result, Brown encouraged brokers to refer their colleagues to the aggregator, which he said would support them with its consolidated aggregation model and BDM support.

However, following a 12-month period of announcements on multiple alliance and JV partners, Brown flagged that Vow would engage in more tie-ups over the next few months.

"We have about six balls in the air at the moment, and hopefully in the next few months there'll be more announcements."

Brown said that the aggregator was succeeding in growing its market share in competition with other mortgage competitors, and that loan volumes were increasing.

He again urged brokers to make use of the diversification opportunities the aggregator had put in place such as financial planning arm Vow Wealth, so as to build value into their business.

Brown said while a 'monoline' income business from mortgages would fetch betwen 1.5 and 2x multiples, diversified businesses could get between 3 and 3.5x.