Wealth management firm continues acquisitive streak with thirteenth deal of the year
Financial services group AFH has announced its thirteenth acquisition of 2018, which comes hot on the heels of a £4.2m deal it made earlier this week.
AFH has completed its acquisition of Ashton House IFA based in Bedfordshire, and as a result of the transaction, Tony James will join AFH as a financial adviser and continue to support his existing client base while developing the AFH presence in the Home Counties.
Under the terms of the acquisition, the maximum purchase price is £2.6m dependent upon performance criteria of the business.
The initial consideration for the acquisition is £1.05m in cash, funded from the company’s existing cash resources. Further deferred consideration will be payable in cash over the next 26 months, subject to enhanced performance criteria of the business being achieved.
For the year to the end of October 2017, Ashton House made profit before tax of £370,000. On a post acquisition pro-forma basis the business would have generated an estimated profit before tax of £500,000 in the period.
Alan Hudson, chief executive of AFH, said: “The acquisition of Ashton House extends AFH’s client base and coverage within the Home Counties and complements other acquisitions made in 2018, including Harrison White and Monopoly Financial Consultants, which were announced earlier this year. I am pleased to welcome Tony to AFH and I look forward to working with him to develop the business and provide his existing clients with the benefits of the AFH proposition.
“This is our thirteenth acquisition this year and together with the transactions recently announced reflects the activity we are seeing in the sector.”
On Monday, AFH announced it had bought South West firm Lyn Financial Services in a deal worth up to £4.2m.
The deal was one of its largest to date, and follows on from the previous week’s announcement of the £5.1m purchase of Chesterfield-based HTH (Group).
