Consolidator AFH Financial Group has acquired a national IFA for up to £4.1m, its largest acquisition deal to date.
AFH has acquired Stroud-based Independent Financial Services (U.K.) for an initial cash sum of £450,000, paid on completion of the deal yesterday.
A further sum of up to £3.65m will be paid in three tranches over the next 32 months, based on the performance of IFS. Half will be paid in cash and half through the issue of new ordinary shares in AFH.
The deal adds 35 advisers and £400m in assets under advice to AFH’s business, taking the company’s total assets to £1.7bn.
IFS posted a pre-tax profit of £230,000 for the year to the end of February.
The acquisition marks the tenth deal since AFH listed in June.
AFH chief executive Alan Hudson says: “Today’s acquisition signifies another key milestone as both our largest to date and our first of a national firm.
“IFS represents a significant paper-based transaction with protection for existing investors against excessive dilution and provides excellent geographical synergy to the company’s current advisers. We look forward to welcoming all new joiners as we head into another progressive period.”