Kelly Partners furthers its US exposure with new partnership
Kelly Partners Group has announced the company will be partnering with Florida based CPA company, FRSCPA, to further their global impact and scope.
Kelly Partners Group (KPG) and FRSCPA, a Florida based company, announced the beginning of their partnership through executed agreements, based on a purchase price of AUD$7.6 million.
KPG said this partnership is material to the company, measured at approximately 10 per cent run rate of revenue and is expected to be accretive to earnings.
FRSCPA is a public accounting firm “committed to providing its clients with high quality, professional accounting, tax and consulting services in a manner that incorporates sound professional business and personal ethics”.
A wholly owned subsidiary of KPG will acquire 50.1 per cent of the business, with the remaining 49.9 per cent held by all four existing equity partners of the business under KPG’s partner-owner driver model.
All partners have made a long-term commitment to the partnership, one by five years, one by seven years, and two by 10 years.
KPG said they hold co-ownership on the structure and operating model Partner-Owner-Driver, which is transforming the Australian accounting market and provides a strong platform for long-term sustainable growth.
“The combination of proven business model and specialist operational expertise enables KPMG to solve many of the issues currently facing both the accounting sector and the SME clients of our firms.”
FRSCPA has been a leading accounting group to McDonald’s franchisees for more than 35 years.
The Florida CPA company services approximately 5 per cent of all McDonald’s restaurants in the US, while KPG services franchisees that own 10 per cent of McDonald’s restaurants in Australia.
Founder and CEO of KPG Brett Kelly said he was thrilled about the partnership between the two companies.
“We are humbled to be chosen by this terrific group of partners in this leading USA accounting firm,” he said.
“The partnership confirms the attractiveness KPG offers and our partner-owner-driver model to owners of leading accounting firms.”
KPG said the annual run rate of the company post completion is expected to be AUD$130 million.
Since the end of 2023, KPG has made various partnerships in the US.
Together, these US partnerships now account for 12.5 per cent to 15.2 per cent of the group’s revenue, equating to AUD$15.9 million to AUD$19.9 million.
KPG was first established in 2006 “to provide a better service to private clients, private businesses and owners and families”.
KPG began as two greenfield offices in North Sydney and the Central Coast, and now consists of 34 operating businesses across 38 locations in Australia, Hong Kong and the US.
The KPG team now consists of more than 550 staff members, which includes more than 90 partners who help over 23,000 SME clients.
Kelly said KPG is soon to also expand operations in the UK.
