Companies  

AFH continues expansion with acquistion of Shape Financial

The IFA and discretionary wealth manager has taken over Somerset-based Shape Financial in a deal that could potentially reach £1.5m after 27 months, depending on profitability.

The deal is part of the firm’s expansion plans and brings on board 16 new advisers, including all five shareholder directors of Shape Financial. The company’s total workforce of advisers now stands at 104.

Shape Financial reported a turnover of £1.5m in its most recently completed financial year. Advisers will continue to operate out of Shape Financial’s Somerset-based office, broadening the AFH’s presence into the southwest of England.

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Alan Hudson, chairman and chief executive of AFH, said an initial £125,000 was paid for the acquisition in cash from the firm’s existing resources.

Additional funds will be payable to Shape’s former directors after 15 months and 27 months, depending on profitability.

He added: “This acquisition further advances our successful strategy of growing the company both organically and through select and well-timed acquisitions.

“Importantly Shape Financial is a strong cultural fit for AFH, and its Somerset outpost provides a platform from which the company can extend its reach into the southwest region.”

Background

AFH was floated under an initial public offering in June 2011 and embarked on an aggressive acquisition process, which Mr Hudson said was designed to take advantage of the fragmented nature of the IFA market and the burdens placed on many firms by the RDR.

The firm employs advisers in locations throughout the Midlands, south Wales, the northwest of England and London, and was founded 22 years ago by chartered financial planner Alan Hudson.

It offers traditional IFA services in addition to discretionary investment management and stockbroking.