Listed IFA AFH Financial has acquired Nottingham-based IFA Clarendon Financial Solutions, for just over £460,000, adding approximately £25m in funds under management.
Under the terms of the deal, the maximum consideration payable by AFH is £461,100. The initial consideration will be satisfied by a cash payment upon completion of £230,550, taken from the firm’s existing cash resources.
Further deferred consideration of up to £230,550 will be payable in cash over the next 26 months in two tranches and dependent upon performance criteria of Clarendon over the next two years.
Clarendon’s three shareholders also joined AFH as financial advisers on completion of the acquisition yesterday (1 April).
Alan Hudson, chief executive of AFH, said that he continues to see good acquisition opportunities arise.
“This is the sixth acquisition made during this financial year, which has seen the group expand across Devon, Kent, Oxford, the West Midlands and now the East Midlands.”
This is the ninth acquisition since AFH listed on AIM in June last year and follows a deal for Rochester-based adviser CIB Wealth Management at the start of March for almost £975,000.
Last year, plans were made to expand the national presence during 2015 by acquiring firms in London and the south east.
peter.walker@ft.com
