Esencia expands into Queensland with merger deal

Matthew Fenning, head of Sydney-based Esencia, outlines how to keep culture uniform across states following the firm’s move into Queensland. Founded in 2024, Esencia recently sealed its first interstate acquisition through a multi-merger with Financial 3 Wealth, together with Marsden Wealth Advisers, in Queensland.

Through a recent agreement, Esencia expanded its team by four financial advisors and gained approximately 300 new clients. Since finalizing the merger, an additional six members have joined the group. This marks Esencia’s first acquisition outside its home state of New South Wales, despite having completed several within it previously.

Expansion Plans

The company aims to serve between 8,000 and 10,000 clients within five years. Currently, 24 representatives manage 2,800 clients, a significant increase from 11 advisors and 1,000 clients in March. Esencia focuses on three key principles for mergers and acquisitions: delivering exceptional client outcomes, supporting a positive work environment for dedicated employees, and implementing innovations that allow advisors to dedicate more time to clients.

In an interview with Money Management, CEO Fenning emphasized the critical role of maintaining a consistent culture during mergers and acquisitions, stating it can determine the success or failure of a deal. While Esencia values the unique strengths of acquired firms, Fenning stressed the importance of aligning with Esencia’s core values and operational methods post-acquisition.

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“Culture eats strategy for breakfast, it’s absolutely true whether it’s 60 people or 600 people,” Fenning said. “If there’s not a good cultural fit, that can be a big barrier. A firm might look good on paper but if the staff don’t have the values and culture behind it then it can be quite the clash.”

Maintaining Culture

As for how he enacts this on a day-to-day basis, especially if the staff are in multiple locations, Fenning acknowledged it takes work on both sides to come to a new arrangement. There are now 68 staff at Esencia – through M&A and organic hires – compared to 16 back in 2024. Fenning travels regularly between the offices and hosts teambuilding days to bring everyone together.

Based in Sydney, Fenning noted that Esencia operates without a traditional fixed headquarters, considering it an outdated concept. The company planned a teambuilding day in July.

Fenning’s goal is to establish a cohesive business with a shared purpose and values, regardless of geographical differences.

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Esencia completed its first interstate acquisition in 2024 and Fenning seeks further investments to achieve the target of 8,000 to 10,000 clients within five years.

Esencia’s ambition is significant, but size isn’t the definition of success, Fenning said. It’s more about setting a standard, and 10,000 people is a lot to be helping, but it’s small in the context of the number of Australians who could benefit from advice. The company’s goal is to provide world-class client outcomes and be a great workplace for its employees.

Fenning’s approach to maintaining culture, including regular travel between offices and teambuilding days, is essential in ensuring the company remains a great workplace for its employees.