Consolidator AFH has acquired Colchester-based advice firm Britton Financial.
The deal is AFH’s first for the current financial year. It completed 13 deals in the previous financial year.
A stock exchange announcement says the maximum purchase price is just over £2m. For the 12 months ended 31 May 2017 Britton reported profit before tax of £352,551.
AFH will make an initial consideration of £1.1m in cash with the remaining amount paid over the following 26 months in two lots and dependent on performance.
Following the acquisition Britton owner Ken Kerr will retire and the business’s clients will transfer to AFH advisers.
According to the statement, AFH estimates that on a pro-forma basis and after the transfer of clients it would have generated profit before tax of £500,000.
AFH chief executive Alan Hudson says: “This first purchase of an IFA business during the current financial year demonstrates the continued high level of activity that we are seeing in the market.”
He adds: “The latest acquisition enhances our position in the South East of England and continues our strategy of providing a stable and well-capitalised business within which the clients of retiring IFAs can continue to receive appropriate professional advice and investment management.”