Consolidator AFH has added £16.5m in funds under management by acquiring Lancashire IFA David Rushton Associates.
The acquisition price of £298,125 represents just 1.8 per cent of total funds under management at David Rushton with £157,500 paid on completion of the deal. A further £140,625 will be paid over the next 26 months in two lots, dependent on performance.
After the acquisition managing director David Rushton will join AFH.
AFH chief executive Alan Hudson says: “The acquisition of the assets of David Rushton follows the strategy restated in our recent trading update 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 of all sizes that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders.”
AFH acquired 11 advice firms during 2015. Between 2011 and when AFH listed on Aim in June 2014, the firm made 21 acquisitions.
Its most recent acquisition came in October this year, when AFH acquired the assets of East Anglian IFA CRS Financial Planning.
However, Hudson says he prefers not to call the firm a consolidator as it also pursues organic growth.