AFH has bought Bay Financial Management, an IFA based in Devon, in a £1.4m deal.
As a result of the acquisition Seamus Coleman, Simon Durant and Nigel Hull have joined the AFH Group.
Bay will add around £73m to AFH’s funds under management.
Alan Hudson, chief executive of AFH, said: “This acquisition continues to strengthen our presence in the south west and I look forward to working with Seamus, Simon and Nigel to further develop AFH.
“The acquisition of Bay is our fifth acquisition this year and will be integrated in line with our established model to enhance shareholder value during the current financial year.
“We continue to have a strong pipeline of future acquisition opportunities.”
Under the terms of the acquisition, the maximum consideration payable by AFH is £1.4 million based on the performance of Bay over the next 24 months.
The initial consideration has been satisfied by a payment upon completion of £595,000 funded from AFH’s cash resources.
A further deferred consideration of up to £805,000 will be payable over the next 24 months in two tranches and dependent upon performance criteria.
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”.
But since the start of the year the consolidator has made five acquisitions.
Earlier this week AFH said it had set aside £6.7m for acquisitions.
damian.fantato@ft.com
