Listed IFA continues consolidation with 5th deal in 2 months

Listed Worcester-based IFA consildator AFH Financial Group has bought the assets of Stoke-based independent advisory firm SR Wealth Management in a deal worth around £200,000.

SR has about £10.2m of funds under management and had recurring income of £63,000 in its most recent financial year.

An initial cash payment of £94,500 will be augmented by a further consideration of up to a maximum of £105,000 over the 26 months following the acquisition, depending on the performance of the acquired firm during that period.

Article continues after advert

Martin Bradshaw, the owner and vendor of SR Wealth Management, has left the industry and SR Wealth Management’s clients will in future be serviced by existing AFH advisers.

The deal is the 20th completed by AFH since listing on ISDX (then the Plus-SX exchange) in June 2011 and is the seventh since the Retail Distribution Review was implemented in January 2013.

It is also the fifth in just 73-days since the purchase of West Midlands-based Origin Financial Ltd in deal worth up to £1.1m on 4 November. Since then it has also bought Bridgend-based AG Financial Planning in a £422,000 deal and Herefordshire IFA Robert Magee & Associates in a £468,000 deal.

Most recently, in December the firm acquired the assets of Scottish wealth manager Michael Mac Wealth Management for a potential total consideration of a little more than a quarter of a million pounds.

Alan Hudson, chairman and chief executive of AFH, said: “As expected, RDR continues to drive consolidation within the industry; we remain committed to capitalising on this opportunity by making well-timed, select investments that complement our dynamic business.”

AFH’s latest purchase comes after the consolidator raised around £2.8m in equity and bonds to fund further acquisitions last August.

The next month the firm once again added to its coffers by raising another £500,000 through the sale of shares to a pair of private investors that have backed the company since its initial listing in 2011, taking the total acquisition war chest to £3.3m.