AFH on the acquisition trail again

AMBITIOUS Bromsgrove financial services group AFH has made two more acquisitions.

It has bought Derby-based IFA Quest Financial Management and Blackburn’s Phoenix Independent Financial Services.

Two advisers left Quest on completion of the acquisition and existing AFH advisers have taken over their client relationships.
 
Under the terms of this acquisition the maximum consideration payable by AFH is £585,000. The initial consideration has been satisfied by a cash payment upon completion of £292,500, satisfied from the company’s existing cash resources.

Further deferred consideration of up to £292,500 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of Quest over the next two years.
 
Under the terms of the Phoenix acquisition, the maximum consideration payable by AFH is £489,345. The initial consideration has been satisfied by a cash payment upon completion of £240,250, satisfied from the company’s existing cash resources. Further deferred consideration of up to £249,095 will be payable in cash over the next 26 months in two tranches and dependent upon performance criteria of Phoenix over the next two years.
 
The acquisitions of Quest and the assets of Phoenix are the 11th and 12th acquisitions made by AFH since it listed on AIM in June 2014 and will, in aggregate, add approximately £320,000 of recurring revenue to the company.
 
Alan Hudson, chief executive of AFH, said: “Following the acquisition of Independent Financial Services at the end of April we continue to offer IFA businesses the opportunity to either become part of a larger group or to allow the principals of those businesses the ability to realise value as they retire.”
 
“These are the eighth and ninth acquisitions made during this financial year which has seen AFH continue to leverage its centralised administration and support functions to develop its expansion nationally.”

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