Case Study: Merger

Background

Peter, the owner of a successful financial advice business in Queensland, faced a business challenge - several of his advisers were struggling to continue with their share equity loans within his business due to the amount of interest rate hikes and the terms of the loans they were on with another lender.

Approach

Peter sought a strategic merger with another advice firm, a Sydney-based company, that aligned with his organisation’s values and business goals. The merger presented a unique opportunity to renegotiate existing loan terms and improve the interests of all shareholders.

Peter understood the financial challenges faced by his younger generation advisers in affording share equity loans. He wanted to provide them with an opportunity to grow their personal financial wealth while retaining a strong staff retention model. This enabled one of his advisers, who had a strong property investment portfolio but lacked liquid cash, to buy shares in the business without restructuring their investments.

Peter's experience with AMP centered on providing relief for his business and reducing financial strain on his employees.

In summary

The support and understanding from AMP's Relationship Manager allowed Peter to structure his debt effectively and reduce financial strain, providing a sense of stability for his business. He felt understood and supported by AMP, which has led him to consider discussing his personal loan and increasing his business finance loan as his company continues to grow.

This case study highlights the importance of strategic partnerships and the need to adapt loan agreements to align with the best interests of the shareholders.