Kelly Partners (ASX: KPG) Completes Sydney Bowral Partnership Acquisition, Boosting Revenue Run Rate to $160.4M
In a recent investor update, Kelly Partners Group Holdings Limited (ASX: KPG) announced the successful completion of its acquisition of the Kelly Partners Sydney Bowral Partnership on 31st October 2025. This latest tuck-in acquisition marks another strategic milestone in the company’s expansion strategy, as detailed in their latest ASX announcement, contributing an estimated $4.0-4.4 million in annual revenue and propelling the group’s total run rate to $160.4 million. This figure represents an impressive 60% annualised growth rate.
The completion of this acquisition demonstrates Kelly Partners’ continued execution of its consolidation strategy within the professional services sector, as the company targets both marquee and smaller-scale partnerships across multiple geographic markets.
How Is Kelly Partners Achieving Such Rapid Revenue Growth Through Strategic Acquisitions?
Kelly Partners Group Holdings has orchestrated a remarkable acquisition spree throughout 2025, completing four strategic partnerships in just four months. This systematic approach to growth has resulted in total revenue contributions of $15.3-18.1 million from new partnerships, representing 11.4% to 13.4% of the company’s FY25 revenue base of $134.6 million.
The recent acquisitions are broken down as follows:
| Location | Type | Revenue Contribution | Completion Date |
|---|---|---|---|
| Mission Viejo, California | Marquee | $4.3m – $5.7m | 31 July 2025 |
| Sydney CBD + Bowral | Tuck-in | $4.0m – $4.4m | 31 October 2025 |
| Pittwater, NSW | Tuck-in | $1.0m | 29 August 2025 |
| Philippines | Marquee | $6.0m – $7.0m | 16 October 2025 |
This strategic expansion has transformed Kelly Partners’ revenue trajectory from $108.1 million in FY24 to the current estimated run rate of $160.4 million, showcasing the effectiveness of the company’s acquisition-focused growth model. Furthermore, this latest partnership represents a carefully selected addition to the company’s growing portfolio, strengthening the firm’s presence within key NSW metropolitan and regional markets.
The current year’s growth comprises multiple components that illustrate a dual-engine approach to expansion. Organic growth and annualised FY25 acquired growth contributed $9.1 million (6.8%), whilst current year acquisitions delivered $16.7 million (12.4%). This breakdown reveals that whilst acquisitions drive significant expansion, the company maintains healthy organic growth rates, indicating strong underlying business performance.
What Makes Kelly Partners’ Partner-Owner-Driver Model So Effective for Scaling?
The company’s unique Partner-Owner-Driver® operating model serves as a key differentiator in the professional services consolidation market. This structure allows local partners to maintain ownership stakes in their individual practices whilst benefiting from the broader network’s resources, technology, and operational support.
Unlike traditional accounting firms where partners function as employees, Kelly Partners’ model creates a powerful alignment of interests. Partners are motivated to grow their local businesses because they directly benefit from increased profitability through their ownership positions. This approach has proven particularly effective in retaining top talent and maintaining the client relationships that drive sustainable revenue growth.
Key advantages of this model include:
- Higher retention rates amongst key talent due to equity participation
- Stronger local client relationships maintained through partner ownership
- A scalable growth platform enabling rapid integration without cultural disruption
- A recurring revenue base from sticky accounting service relationships
Over the past 19 years, Kelly Partners has executed 80+ individual transactions, transforming 50+ external firms whilst launching 30+ greenfield businesses. This track record demonstrates both acquisition expertise and successful integration capabilities across diverse markets, with this acquisition representing the latest addition to a proven strategy.
Why Are Investors Watching Kelly Partners’ International Expansion Strategy?
Kelly Partners Group Holdings has evolved from a regional Australian accounting firm into an international professional services consolidator. The company now operates 40 businesses across 41 locations spanning Australia, Hong Kong, the United States, and the Philippines, serving over 25,000 SME clients with a team exceeding 600 professionals, including 100 partners.
The geographic expansion strategy encompasses diverse markets with substantial growth potential. In Australia, the company maintains 25 locations representing the core established market. The Philippines expansion now includes 6 locations, providing access to Southeast Asian growth markets whilst benefiting from cost-effective operational capabilities.
Moreover, the Mission Viejo, California, acquisition holds particular significance as Kelly Partners’ entry into the massive U.S. accounting market. This move positions the company to capitalise on opportunities within America’s fragmented professional services landscape.
How Does the Sydney CBD and Bowral Partnership Strengthen Kelly Partners’ NSW Footprint?
The Kelly Partners Sydney Bowral Partnership acquisition strategically enhances the company’s presence across two distinct NSW markets. Sydney CBD represents Australia’s premier commercial centre, whilst Bowral offers access to the Southern Highlands regional market, where established businesses require trusted local expertise.
This dual-market approach exemplifies Kelly Partners’ strategy of combining metropolitan and regional presence within cohesive geographic clusters. The estimated annual revenue contribution of $4.0-4.4 million from the Sydney and Bowral practices represents solid earnings accretion relative to the firm’s existing base.
What Financial Metrics Demonstrate Kelly Partners’ Growth Trajectory?
Kelly Partners’ financial trajectory demonstrates consistent growth acceleration through both organic expansion and strategic acquisitions like the Kelly Partners Sydney Bowral Partnership. The company’s revenue progression illustrates the compound effect of its acquisition strategy across multiple financial years.
| Period | Revenue | Growth Rate |
|---|---|---|
| FY24 | $108.1M | 29.3% |
| FY25 | $134.6M | 24.5% |
| FY26 Run Rate | $160.4M | 19.2% YTD / 60% Annualised |
The current 60% annualised growth rate represents exceptional performance within the professional services sector, where organic growth typically ranges between 5-10% annually. This acceleration demonstrates the successful execution of the company’s acquisition-led expansion strategy.
How Does Kelly Partners’ Hold Co Structure Support Continued Expansion?
Kelly Partners’ Hold Co ownership structure provides the financial flexibility necessary to pursue strategic opportunities whilst maintaining operational focus across multiple jurisdictions. This corporate architecture separates ownership and operational management in ways that support both partner autonomy and centralised strategic direction.
The Hold Co model enables Kelly Partners Group Holdings Limited to acquire controlling interests in accounting practices whilst allowing founding partners to retain meaningful equity stakes. This arrangement addresses a critical challenge facing ageing accounting firm principals: creating liquidity events without forcing complete retirement or losing operational involvement.
What Competitive Advantages Position Kelly Partners for Continued Success?
Kelly Partners Group Holdings possesses several differentiated characteristics that support sustained competitive advantage. The company’s 19-year operational history provides deep institutional knowledge about successful integration methodologies and partnership structuring approaches.
The proven business model addresses key challenges facing both the accounting sector and the SME clients it serves. For accounting firm principals approaching retirement, Kelly Partners offers an attractive succession planning solution. For clients, the model delivers enhanced service capabilities through specialist resources whilst preserving familiar local relationships.
Key operational metrics underscore the platform’s scale advantages:
- Client base: Over 25,000 SME clients across multiple jurisdictions.
- Professional Team: A network of over 600 professionals, including more than 100 partners.
- Geographic Footprint: 41 locations spanning Australia, the US, Hong Kong, and the Philippines.
- Proven Track Record: Over 80 individual transactions completed in 19 years, demonstrating deep integration expertise.
These competitive advantages, combined with a scalable operating model and a clear expansion strategy, position Kelly Partners Group Holdings for sustained growth. For investors, the company’s ability to consistently execute its acquisition strategy whilst maintaining organic growth presents a compelling narrative in the professional services sector. The completion of the Sydney Bowral acquisition further solidifies the company’s market position and supports its ambitious financial targets.
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