Eighth acquisition in nine months for AFH

AFH, the financial planning group, has made another purchase, buying Rochester-based CIB Wealth Management for a maximum consideration of £973,350.

CIB’s five financial advisers, including the principal of the business Jonathan Dalby, have joined Bromsgrove’s AFH on completion.
 
CIB was formed in 2010 by Jonathan and Nicola Dalby and has some £41m of funds under management.
 
Under the terms of the acquisition, the initial consideration will be satisfied by a cash payment upon completion of £453,600, satisfied from the company’s existing cash resources, and the issue of 31,500 ordinary shares of 10p each in the company to Jonathan Dalby, the owner of CIB, at a price of 150p per share.

Further deferred consideration of up to £472,500 will be payable over the next 26 months in two tranches and dependent upon performance criteria of CIB over the next two years.

The deferred consideration is expected to be settled 90% through cash and 10% through the issue of new ordinary shares of AFH based on the prevailing mid-market price of AFH’s ordinary shares on the date the deferred consideration is paid.
 
Alan Hudson, chief executive of AFH, said:  “The acquisition of CIB represents an excellent opportunity for AFH to develop our presence in the South East of England.  

“The CIB transaction represents our eighth acquisition since listing on AIM in June 2014 and adds over £40m of funds under management to the group. 

“Importantly, it also provides CIB advisers the opportunity to develop their own client bases with the support and infrastructure of a larger business and to build a future capital value through AFH’s in-house adviser practice buy-out scheme.” 

Last month AFH made three acquisitions in a week, snapping up Kidderminster’s KL Plester Financial Holdings, Oxfordshire’s Roxborough Consultancy and First Class Financial management, based in West Bromwich.