Listed consolidator AFH Financial has announced two adviser acquisitions for a maximum consideration of £1.07m, which will add approximately £320,000 of recurring revenue to its books.
It has acquired Derby-based IFA Quest Financial Management for a maximum consideration of £585,000.
The initial consideration has been satisfied by a cash payment upon completion of £292,500 from the company’s existing cash resources. Further deferred consideration of up to £292,500 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of Quest over the next two years.
Two advisers have left Quest on completion of the acquisition, with existing AFH advisers taking over their client relationships.
The listed IFA has also acquired the assets of Blackburn-based IFA Phoenix Independent Financial Services, which was completed on Friday (24 July) for £489,345.
The initial consideration has been satisfied by a cash payment upon completion of £240,250, again paid out from existing cash resources. Further deferred consideration of up to £249,095 will be payable in cash over the next 26 months in two tranches and dependent upon performance criteria of Phoenix over the next two years.
The acquisitions of Quest and the assets of Phoenix are the eleventh and twelfth acquisitions made since AFH listed on the Alternative Investment Market in last June and will, in aggregate, add approximately £320,000 of recurring revenue.
Alan Hudson, chief executive of AFH, said: “These are the eighth and ninth acquisitions made during this financial year which has seen AFH continue to leverage its centralised administration and support functions to develop its expansion nationally.”
At the end of May, the firm raised £750,000 through the placing of new ordinary shares, to be used to continue its acquisition-led growth strategy.
peter.walker@ft.com
