Wealth management firm makes another acquisition
Bromsgrove financial services group AFH has announced a £3.2m acquisition, less than a week after completing the purchase of two firms in deals worth more than £7m.
The company has completed the acquisition of Broadleaf Financial Services, an IFA business based in the Wirral, for a maximum consideration of £3.2m, subject to performance criteria of Broadleaf during a two year earn out period.
Four advisers from Broadleaf will join AFH together with their support staff, bringing their clients and £140m of funds under management. The initial consideration for the acquisition is £1.7m and was paid from existing cash reserves, with the balance payable in cash over a 26-month period.
Following the acquisition, John Shaw, principal adviser and director and one of the founders of Broadleaf, together with his fellow directors, have retired from the business.
Last week, AFH announced it had acquired Mulberry Independent Financial Advisers based in Twickenham for £5.3m, and Hemel Hempstead-based AE Garment Independent Financial Services for £1.9m.
Alan Hudson, chief executive of AFH, said: “This acquisition follows the recent acquisitions of Mulberry Independent Financial Advisers and AE Garment, bringing the total committed spend to £10.4m since the Convertible Loan Stock placing in July 2019. 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.”
AFH saw revenues rise 61% in the first half of 2019 as it reaps the rewards of its aggressive acquisition strategy, making four acquisitions in the period, and spending £16m acquiring 16 businesses in 2018.
