AFH has agreed to buy Hertfordshire-based adviser AE Garment Independent Financial Services in a deal worth £1.7m.
As part of the deal, AFH paid an initial cash fee of £880,000. A further two payments worth up to £880,000 will be paid over the next 26 months, depending on AE Garment meeting performance targets.
The 200-strong client base of AE Garment will move to existing AFH advisers and company director Tony Garment will retire.
This was AFH's fifth acquisition this year. Last week, the firm announced it was to raise £20m through the issue of convertible loan stock to fund more acquisitions, in addition to the five already going through the due diligence process.
AFH has £5.4bn of assets under management and 12 offices around the UK.
Alan Hudson, AFH's chief executive, said: "Our fifth acquisition of the year strengthens our position in the home counties and underlines our commitment to growth. At the same time, we are helping retiring independent financial advisers to find the right home for their clients.
"I wish Tony all the best for a long and happy retirement. He can certainly rest assured his clients will be well looked after by the team at AFH."
Tony Garment added: "After 28 years in the financial planning industry it’s time for me to take some down time and turn my attention to new interests. AFH is absolutely the right fit for our clients and I have the upmost confidence they will do an excellent job in the years to come."
