Financial advice consolidator AFH has bought Lifetime Investment and Seminar Services, an advice firm based in south Yorkshire.
AFH has bought the client portfolios of the firm, in a deal which could be worth up to £500,000, the consolidator said in a statement.
The initial consideration for the acquisition is £257,000, funded from AFH's cash resources, with more money due to be paid over the next 26 months in two tranches, dependent on the performance of Lifetime Investment and Seminar Services.
Mark Penty, principal at Lifetime Investment and Seminar Services, which he set up in 2011, will retire.
He said: "As a sole adviser I decided after 35 years in financial services that the operational challenges of implementing all the new regulatory requirements are a challenge too far.
“The needs of my clients will clearly be better met by a larger firm. The in-house expertise and national reach of AFH means my clients will continue to be dealt with at a local level and receive a top-quality service in the future.”
Mr Penty has around 300 clients, primarily in south and west Yorkshire and Lincolnshire.
This is the fifth acquisition AFH has embarked on during the current financial year.
The deal continues the firm’s “strategy of providing a stable and well capitalised business within which successful IFAs can continue to provide their clients with professional advice and investment opportunities, both on a personal basis and in retirement,” Alan Hudson, chief executive of AFH, said.
In March, AFH announced that it has £24m to spend on acquisitions.
In February, AFH revealed it had bought Hertfordshire-based Harrison White FS in a £738,000 deal.
The deal followed the acquisition of Monopoly Financial Consultants in January.
maria.espadinha@ft.com
