AFH boosts funds under management by £25m in new deal

WORCESTERSHIRE wealth management firm AFH has boosted its portfolio with a new acquisition.

The Bromsgrove-based firm has acquired the assets of CRS Financial Planning, an East Anglian based IFA.

Following the acquisition Chris Stapleton, the vendor, will retire from the business and clients will be serviced by existing AFH advisers.

Under the terms of the acquisition, the maximum consideration payable by AFH is £663,670, representing approximately 2.6% of the funds under management. An initial cash consideration of £378,920 has been paid upon completion, funded by AFH’s existing cash resources.

Further deferred payments of up to £284,750 will be made in cash over the next 26 months in two tranches, dependent upon performance.

The deal is AFH’s first corporate transaction of the current financial year, which it said was consistent with its strategy of making carefully selected value enhancing acquisitions. CRS will add approximately £25m to AFH’s funds under management.
 
Commenting on the deal, Alan Hudson, chief executive of AFH, said: “The acquisition of the assets of CRS follows the strategy, established by the company when we listed on AIM in June 2014, of making selective acquisitions to develop our expansion nationally and leverage our central investment and support functions.
 
“The company continues to seek high quality businesses that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders.”