Plus-listed advice firm AFH Financial has acquired Somerset-based IFA business Shape Financial in a deal worth up to £1.5m.
AFH has paid an initial consideration of £125,000 for Shape but that could rise to £1.5m depending on the performance of the business in the two years following the deal.
The addition of Shape’s 16 advisers takes AFH’s total to 104.
The deal is the 14th acquisition by AFH since its initial public offering in June 2011.
AFH chief executive Alan Hudson says: “Importantly, Shape Financial is a strong cultural fit for AFH and its Somerset outpost provides a platform from which the company can extend its reach into the South West region.”
Thomas and Thomas Financial Services managing director Darren Lloyd Thomas says: “A lot of deals are being done at the moment where firms are selling but the amount paid is based on future performance of the business which is often money they would have made if they had just carried on trading themselves.”
In December, AFH acquired Redditch-based Seager Financial Consultancy for a cash sum of £31,000 and Racol Financial Services, which serves clients in Buckinghamshire, for a cash sum of £240,000.