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AFH swoops on second firm in 24 hours

AFH swoops on second firm in 24 hours

AFH has announced its second acquisition in as many days with the deal to buy a Suffolk-based network.

The deal to buy the entire issued share capital of Eunisure Limited has been completed for a maximum consideration of £4.5m.

Yesterday AFH announced that it had bought Parker Sage Independent Financial Advisers Ltd for £4.5m.

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Eunisure is a financial planning business based in Newmarket which focuses on the protection market.

Following the sale its managing director Ralph Mortlock will remain on the Eunisure board.

Alan Hudson, chief executive of AFH, said: “The protection gap in the UK has been widely reported.

“Eunisure is one of the leading face to face advisory businesses in this sector with national coverage throughout the UK.

“I believe that the acquisition of Eunisure will significantly increase the distribution capacity of AFH whilst at the same time enabling Eunisure to develop rapidly in its core market.

“Yesterday's acquisition of Parker Sage together with Eunisure's today represents a step change in profitability for the group adding over £2m of pro forma annualised EBITDA.”

Under the terms of the Eunisure deal, the maximum consideration payable by AFH is £4.5m, based on a targeted increase in profitability attributable to the core Eunisure business and introduced financial planning led investment management.

The consideration is to be paid in cash with the initial amount satisfied by a payment of £1.5m funded from AFH’s cash resources.

A further deferred consideration of up to £3m will be payable over the next 48 months in four tranches dependent upon set performance criteria of Eunisure being met in each 12 month period.