Your IndustryMar 19 2018

Harwood pays £4.6m for Southampton-based IFA

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Harwood pays £4.6m for Southampton-based IFA

Harwood Wealth Management has bought the financial advice business of a Southampton-based insurance firm.

The deal will see Harwood buy AE Financial Services from AE Insurance Services for £4.6m.

AE Financial will continue to operate as a standalone brand and David Hayward, its director, will remain with the company.

Harwood has said the acquisition is its most significant one to date and will give the company a "strategic hub" in Southampton.

Peter Mann, chairman of Harwood Wealth Management, said: "AE Financial is a strong addition to the group and we look forward to welcoming both the team and clients to Harwood Wealth.

"As well as further augmenting our presence in a key area of the UK, this acquisition continues to build upon our successful model of acquiring IFA firms who share our values and culture.

"We look forward to continuing to deliver on our strategy, driving growth organically and through further M&A in the period ahead."

For 2017 AE Financial reported revenue of £1.3m and profit before tax of £500,000. It has assets under influence of £130m.

The initial consideration of £2.4m has been paid from Harwood's cash resources and the remaining £2.2m will be paid in two tranches over next 24 months, subject to performance criteria.

Mr Hayward said: "We are very pleased to be joining such a well-respected and successful group.

"I am confident that Harwood will be a perfect fit for our team and allow us to develop the business and continue to provide high quality and dedicated advisory services to our clients. We very much look forward to joining the team."

damian.fantato@ft.com