Listed IFA completes 16th acquisition in £1.1m deal

Listed IFA AFH Financial Group has completed it third acquisition this year by purchasing West Midlands-based Origin Financial Ltd in deal worth up to £1.1m.

The purchase will comprise an initial cash payment within three months of completion of £412,501 from the company’s existing resources, with a further cash consideration of up to £687,499 payable over the 29 months following the acquisition depending on performance.

Origin has approximately £88m of funds under management for clients throughout the West Midlands. In the year ended 31 December 2012, it had revenues of approximately £770,000, of which £440,000 was recurring income.

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All advisers and staff will remain with the company, including Andrew Smith, current chief executive of Origin, who will be a divisional director. The business will, after a short integration period, operate from AFH’s Bromsgrove headquarters.

This acquisition marks AFH’s sixteenth acquisition since listing on ISDX in June 2011.

Last month, AFH raised a further £500,000 to fund potential advisory acquisitions, adding to a £2.8m fundraising that was undertaken in August.

In August, AFH raised £2.8m through a mixture of new equity and corporate bond issuance, which it said it would devote in large to making acquisitions.

Alan Hudson, chairman and chief executive of AFH, said: “We are delighted to continue a period of high activity for the company with our sixteenth select acquisition since listing.

“With the recent fundraising completed, we have the necessary capital to make strategic investments in complimentary businesses that add immediate value and help promote AFH as a leading UK IFA.”