AFH Financial Group, a wealth management and advisory firm that is listed on Plus, has announced the acquisition of Nottingham-based IFA firm The Arden Court Group in a deal that could be worth up to £924,000 with earn-outs.
The deal marks the seventh bolt-on purchase since AFH’s listing in 2011. Following the acquisition nine of Arden’s advisers will be integrated into AFH’s Bromsgrove headquarters, taking the total number of advisers to 80, up from 53 at the time of its listing.
Nat Parmar, the current managing director of Arden, will join AFH as regional director covering the north.
The initial consideration for the acquisition is £362,000, which is made up of £337,000 in cash and 25,000 ordinary shares of 10p each in AFH at a price of £1 per share.
A deferred cash consideration up to a maximum of £337,000 may also be payable depending on Arden’s performance in the two years following the deal.
AFH has also issued a total of £225,000 of loan notes which are convertible into ordinary shares 13 months after completion of the acquisition at a rate determined by Arden’s performance over that period. In total the deal could be worth £924,000 if all performance targets are met.
Arden was established in 1994 and currently has about 2,500 clients whose total assets amount to around £100m. In its financial year to 31 May 2011, Arden made a gross profit of £418,000 on revenues of a little more than £1m.
