AFH Financial Group has bought a Wirral-based IFA firm for £3.2m in the third deal announced by the wealth manager this month.
In a statement this morning (September 18) AFH announced the purchase of Broadleaf Financial Services Limited would add £140m in funds under management to its business.
The wealth manager will gain four advisers as part of the deal while Broadleaf's directors, including principal adviser and founder John Shaw, have retired from the business.
In May AFH reiterated its commitment to providing an exit for retiring IFAs in the market, when it also announced a 68 per cent jump in funds under management for the group.
AFH has agreed to pay a maximum £3.2m for Broadleaf, with an initial payment of £1.7m and the remainder payable over a 26-month period and dependent on the performance of the business.
Last week the Aim-listed wealth manager announced the acquisition of IFA firms Mulberry Independent Financial Advisers Limited and AE Garment Independent Financial Services Limited for £7.2m, in deals which added £215m of funds to the business.
Alan Hudson, chief executive of AFH, said the company's most recent acquisition brings it total spend to £10.4m since it raised £20m from the stock market in July.
He said: "The acquisition has been completed on a similar attractive multiple to previous transactions and extends the AFH footprint in the North West of the UK.
"As previously reported, in this period of economic and political uncertainty we remain focused on driving the organic growth of our business by providing professional and cost-effective services to our clients and, in-turn, enhancing profitability.
"The company remains well capitalised to take advantage of the previously identified acquisition opportunities and to continue its record of delivering profitable growth and enhanced shareholder value."
In its full year results published in January AFH reported a 94 per cent increase in profits after tax from £3.1m in 2017 to £6m last year, exceeding its own target predictions.
In the results, which followed 16 acquisitions last year, the wealth manager set new three to five year targets, hoping to achieve funds under management of £10bn, revenues per annum of £140m and underlying earnings margin of 25 per cent on revenue.
What do you think about the issues raised by this story? Email us on firstname.lastname@example.org to let us know.