Cluster group IBNA is making sure one thing isn’t forgotten in the speculation over its six-month merger negotiation period with rival cluster Austbrokers: in the end it’ll be IBNA members who call the shots.

The negotiations – which Sunrise Exchange News reported two weeks ago – will be used to initiate discussion on whether it is viable to merge the two groups into a mega-cluster handling a premium of $1.5 billion.

But IBNA CEO Paul Sedgwick is emphasising that no deal has been done and no contracts have been signed.

IBNA says the aim of the discussion is to ascertain whether it is in IBNA members’ interests to establish a joint venture with Austbrokers that could provide succession planning, equity injections and greater marketing services for an enlarged group.

“Six months gives us time within which to progress discussions,” Mr Sedgwick said. “If and when we reach a stage where a workable proposition is negotiated, it will be put to IBNA members for a vote. The ultimate decision-making ability rests with IBNA members alone.”

He says a potential move has a myriad of permutations, options and potential scenarios.

Succession planning is a key consideration for many IBNA members, and the Austbrokers “owner-driver” model offers a ready-made solution for brokers.

“While Austbrokers may get first preference on the sale of a brokerage, any arrangements negotiated would not necessarily preclude sales to third parties,” he said.