Adviser and discretionary fund manager AFH Financial Group has announced the acquisition of Welsh IFA firm AG Financial Planning for £422,000 and Hertfordshire-based IFA Robert Magee & Associates for £486,000.
The deals see AFH gain around £50m in advised assets and 750 clients.
AG Financial director Robert Donaldson will be retained as an adviser but no staff at Robert Magee & Assoxiates will be kept, with Magee leaving the industry.
AFH chief executive Alan Hudson says: “This underlines our strategy of making acquisitions which enhance our existing offering.”
It is the 17th and 18th acquisitions, with five firms bought this year.
Last month AFH raised £500,000 through the issue of ordinary shares to fund further acquisitions. It also launched a bond issue to raise £752,000 in September, and in August announced it had raised £2.8m from investors via a share issue of 1.9m shares at £1.09 a share.
Arch Financial managing director Arthur Childs says: “It is inevitable we will see more consolidation among IFA firms.
“High net worth clients are driving IFA businesses post-RDR and those clients demand a high level of service in terms of technology and interaction with the adviser. That all requires a lot of investment which small firms may not be able to afford so if a larger firm can provide that then that is a good thing.”