Listed financial planning group snaps up Harrogate wealth management firm in £4.5m deal
A listed financial group has acquired Harrogate-based Premier Wealth Management Harrogate in a £4.5m deal.
The Board of AFH announced this morning that the acquisition had completed. Richard Evans, together with Andrew Huby and Premier’s support staff, will join AFH, bringing over £90m of funds under management to further extend the operations of AFH.
Under the terms of the acquisition, the maximum purchase price is £4.5m dependent upon performance criteria of the business acquired. The initial consideration for the acquisition is £2m 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 12 month period ended 31 December 2017, the business reported revenues of £700,000 and profit before tax of £350,000. Since that time the business has demonstrated significant growth in both revenues and profitability. On a pro-forma basis the business has a current revenue run rate of £1.2m, generating operating profits of £900,000.
Alan Hudson, Chief Executive of AFH, said: “The acquisition of Premier is the first transaction of our new financial year and, following the acquisition of Thomas Heald in August, continues the expansion of AFH in the North East. Premier has demonstrated high levels of profitable growth and I am pleased to welcome Richard and his team to AFH. I look forward to working with them for the benefit of our new clients and to increase shareholder value.”
