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Prominent industry figure Doug Daniell has a message for brokers who are considering alliances: joint ventures are usually more sustainable than partnerships.
Mr Daniell is managing partner of Chan & Naylor Finance, the new joint venture between one of Mr Daniell's other interests, Origin Finance, and national accounting and wealth group Chan & Naylor.
With stakes also in Mortgage Mart, Walker & Miller Training Services and CreditLicensing.com.au, Mr Daniell said he is often approached by people looking to tap into his network.
"My first rule of business is 'no partnerships', followed by the second rule which is 'read rule one'. But I'm a great believer in joint ventures," he told The Adviser.
"With partnerships, the parties often don't clarify who's going to do what, when and how, whereas a joint venture is pretty clearly defined if you do it right.
"Our joint venture with Chan & Naylor is nice, because they do a lot of the marketing and we just need to feed off that marketing and run the finance side."
Mr Daniell said Chan & Naylor Finance currently has four offices in Sydney, one in Melbourne and one in Adelaide, with Brisbane and Perth each expected to get their own office soon.
The brokerage has 10 loan writers, with another person about to join. There is currently enough work for 16 brokers, although that is forecast to expand, he said.
Chan & Naylor Finance is mainly staffed by Origin brokers, which has meant clear divisions have had to be established between the two businesses, Mr Daniell said.
"We're scrupulous about brand separation and they understand that," he said.
"It's not difficult, but we're disciplined about it. We have very clear email etiquette and we have a very clear understanding of tracking where clients have come from."
Mr Daniell told The Adviser that Chan & Naylor Finance brokers are getting fed consistent leads from Chan & Naylor, which generally deals with higher-income clients.
"These are pre-qualified referred leads. They've already got existing relationships with Chan & Naylor," he said.
"People trust their accountants – they will do what their accountant directs them to do, most of the time. So it's really exciting how much business the brokers are going to be able to do."
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