Listed Worcester-based IFA consolidator AFH Financial has completed its fourth acquisition in less than 40 days with the purchase of the assets of Scottish wealth manager Michael Mac Wealth Management for a potential total consideration of a little more than a quarter of a million pounds.
The purchase, which will see the owner and founder Michael Mac leave the industry, will add around £8.35m in funds under management. All of the 750 clients of Michael Mac will be transferred to advisers at AFH.
The deal could be worth as much as £250,431 over two years, with an initial cash purchase consideration of £58,851 and a further cash consideration of up to a maximum of £191,580 depending on performance over the 24 months following acquisition completion.
In its most recently completed financial year, Michael Mac had recurring revenues of £83,477, AFH said in a statement.
The firm has now completed four acquisitions in just 37 days since it purchased West Midlands-based Origin Financial Ltd in deal worth up to £1.1m on 4 November. Since then it has also bought Bridgend-based AG Financial Planning in a £422,000 deal and Herefordshire IFA Robert Magee & Associates in a £468,000 deal.
In all this latest purchase marks AFH’s 19th since listing on ISDX (then the Plus-SX exchange) in June 2011 and the sixth since the Retail Distribution Review was implemented.
In August of this year AFH raised around £2.8m in equity and bonds to fund further acquisitions. This was augmented last month when the firm raised another £500,000 through the sale of shares to a pair of private investors that have backed the company since its initial listing in 2011, taking the total acquisition warchest to £3.3m.
