Consolidator AFH has announced a deal to acquire a Devon-based financial planner for up to £2.9m.
The advisers of Davisons Financial Management will join AFH on completion of the deal, which will see Davisons former parent Davisons Chartered Accountants continue to act as an introducer.
The final sum paid will be contingent on the planner’s profitability over the next two years. AFH has paid £1.1m up front, taken from a combination of cash reserves and the issuing of 71,915 shares at a price of 146p.
Of the remaining sum, AFH will pay up to £1.68m in cash, with the balance to be raised through further share issuance.
The deal is AFH’s 13th acquisition since listing on the AIM in June last year.
AFH chief executive Alan Hudson says: “The structure of this deal, which enables the vendors to participate in any future uplift in revenue and profitability through the issue of the consideration shares and will be held for a minimum period of three years, reflects their belief that the sector has significant potential and that our business model is value enhancing.”