Coastal’s three pathway blueprint to M&A

Having completed more than 30 acquisitions, Coastal Advisory Australia chief executive, Daniel Brown, has discussed with Money Management the firm’s approach and tips for advice M&A.

This article was originally published on moneymanagement.com.au.

Coastal Advisory Australia chief executive, Daniel Brown, has discussed with Money Management the firm’s approach to advice M&A, having completed more than 30 acquisitions.

Recently, it completed the acquisition of Brisbane advice business WealthFit in November. It also acquired NSW financial services firm RetireInvest Clarence Valley & Mid North Coast, South Australian advice firm Vector Wealth, and Perth-based single-adviser firm SRM Wealth Solution in September 2025 making a significant push in its national expansion campaign.

In a larger move, Coastal Advice Group (CAG) and Calder Wealth Management merged mid-last year under the CAG name. Then in November the group launched a rebrand as Coastal Advisory Australia to represent their “coast to coast” coverage aspirations.

Brown told Money Management that he had set a target of completing 15 M&A deals in the 2025-26 financial year, something the group has already made considerable progress on, with a number of deals ready for completion over the next few months.

With this knowledge behind them, Brown says the firm has formed a “flexible blueprint” which allows them to offer the best M&A process for its chosen firms depending on their needs.

Three pathways

There are three pathways Brown says the firm uses for M&A – vendor sale, vendor remains part of the business or minority partnership. The first option suits those advisers who are looking to retire or seeking a business successor and the two parties will often spend a year finalising a deal while the second allows the adviser to continue working as an adviser but reduce the compliance burden of running a business.

The final method is designed for ‘growth-orientated’ advisers who want to retain brand identity, systems, processes and products, while accessing capital, strategy and support.

“From an operational standpoint, this is about backing great operators without disrupting what already works,” added Mitch Ramsbotham, partner at Coastal. “We become a non-controlling shareholder, providing capital in exchange for dividends, while helping unlock scale, pricing power and client experience improvements.”

Regardless of the M&A route taken, the most important thing the firm has found is surrounding integration and aligning strategy, people and execution.

“Integration isn’t about imposing systems. It’s about aligning strategy, people and execution so the business is stronger post-transaction than it was before.”

Merchant deal

The start of last year saw Coastal enter a long-term strategic partnership with US capital group Merchant Wealth Partners, providing capital to accelerate its national expansion.

Merchant has also taken a minority, non-controlling position in Coastal as part of the deal.

Through the deal, Coastal has taken a minority investment from Merchant, which it said gives Coastal the balance sheet strength to pursue inorganic growth while remaining selective and ensuring that firms align with our values and long-term vision.

Merchant also entered a partnership with WT Financial last year which saw the pair complete two joint-venture investments.

Brown said: “Merchant’s investment provides us with permanent lifecycle capital, institutional- grade transaction resources and the global expertise of one of the industry’s most active strategic investors. With Merchant’s backing, we’re able to tailor outcomes rather than force them, delivering mergers, acquisitions, and succession pathways that are genuinely bespoke to the needs of each proprietor, unhindered by fund timetables or forced integration models.”

The investment from Merchant also allows Coastal to selectively pursue those minority partnerships of its own through balance sheet strength and scale up the company.

For target firms, the Merchant deal allows Coastal to offer:

• Partial liquidity for owners looking to take some cash off the table 
• Balance sheet support to reduce debt or invest for growth 
• Assistance with internal succession planning 
• Improved negotiating power with lenders through a stronger capital position 
• Access to increased valuations that come with larger business with systems and processes and organic growth

Conclusion

As Coastal chases its expansion goals, the group has maintained the guiding focus on delivering the best outcomes for clients while ensuring any M&A deals it brokers are the right fit for both the incoming firm and Coastal.

“At its core is a belief that long-term success in advice businesses is built on trust, partnership and shared outcomes. Growth only works when client relationships are protected, advice quality is enhanced and people, not just balance sheets are put first.

“Behind the scenes, this blueprint is not driven by transaction volume or speed. It is driven by alignment of values, timing and ambition and importantly by a conviction that the most successful mergers are those where owners, advisers, staff and clients can all look back and say the outcome was fair and genuinely positive.

“These are not transactions for the sake of consolidation. They are partnerships designed to improve the way our clients receive advice.”