AFH has bought the assets of two IFA businesses in deals worth just over £1m.
The acquisition of Aberdeen Wealth Management Limited, based in Aberdeenshire, and Shield Direct, based in Devon, will add £44m to AFH’s funds under management.
Mike Murray, a director at Aberdeen, will join AFH as an adviser but other vendors will retire and their clients will be serviced by existing AFH advisers.
Alan Hudson, chief executive of AFH, said: “The acquisition of Aberdeen will strengthen our position in Scotland and I look forward to working with Mike to continue the development of AFH.
“The acquisition of Shield will bring a number of high quality clients spread across the South West and West Midlands.
“The company continues to seek high quality businesses of all sizes that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders.”
Under the terms of the acquisition of Aberdeen, the maximum consideration payable is £556,500.
An initial cash consideration of £294,000 has been paid upon completion from the company’s existing cash resources.
A further deferred consideration of up to £262,500 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets.
Under the terms of the acquisition of Shield, the maximum consideration payable is £520,000.
An initial cash consideration of £272,000 has been paid upon completion, also from the company’s existing cash resources.
A further deferred consideration of up to £248,000 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets acquired.
During 2016 AFH only made two acquisitions – East Anglian firm CRS Financial Planning and Lancashire-based David Rushton Associates.
Mr Hudson said the lack of activity was due to his desire to focus on “shareholder value”.
damian.fantato@ft.com
