Financial Services Consolidation

Virtual FG's Growth Strategy: Acquisition and Market Factors
Virtual FG devised a plan to expedite its growth through acquisitions. This decision was driven by two key market factors.

Firstly, the increased educational and compliance requirements imposed by the regulator on the profession have led many older practitioners to opt for selling their practices instead of undergoing the rigorous qualification updates. Consequently, the purchase price of existing practices has decreased. As a result, the Company has been able to acquire practices from retiring professionals at approximately 2-2.5 times their renewable earnings, compared to the previous years when they were valued at up to 3.5 times.

Secondly, the availability of bank and private funding has provided the Company with the opportunity to secure loans for up to 50% of the purchase price of existing practices, while still maintaining a positive cash flow.

Track Record
The Company has completed two acquisitions to date. The first was the acquisition of the McCullough practice in late 2021, which has already successfully merged approximately $250,000 in annual renewable income into Virtual RG at a cost of $500,000. The second was the purchase of the Acquire Strategic practice in early 2023, which has added about $900,000 in annual renewable income at a cost of $2.1 million. A further insurance book is under contract with imminent settlement to acquire $90,000 in renewable income at a cost of $170,000.

Acquisitions Strategy
The company plans to purchase existing practices using a combination of the equity raised by this Offer and debt in approximately a 50/50 ratio. The objective is to merge the acquired clients and staff into the current practice to obtain economies of scale, increased growth, profits, and dividends for shareholders.

The Offer Summary
This Offer is made to retail and wholesale investors under a Section 708 private offer. The maximum amount that can be raised from retail investors is capped by law at $2 million from a maximum of 20 shareholders in any 12-month period, but there is no limit on investment by wholesale investors. The minimum application is $50,000, and the minimum total subscription before funds can be released to the Company is also $50,000.

Interested in Learning More?
Simply request the information memorandum and engage in a chat with the founders.