Discretionary wealth management and IFA firm AFH Financial Group has acquired Chartwell Associates IFA in a £480,000 deal.
Chartwell was founded in October 2001 and has an active client bank of 1,200 clients and around £32m of assets under advice.
AFH is acquiring Chartwell assets including its Egham office, where Chartwell’s six advisers will continue to be based.
The maximum consideration payable for the acquisition is £480,000 in cash, which will depend on Chartwell’s profitability in the next 28 months.
AFH has carried out 10 acquisitions including Chartwell since its IPO last year. AFH now has a total of 97 advisers, compared to 53 at the time of the IPO.
AFH chairman and chief executive Alan Hudson says: “The acquisition of Chartwell continues our strategy of growing AFH both organically and by acquisition.
“This transaction also marks a strategically important step for the company as it broadens our geographic presence, placing us closer to the market in London and the South East. We intend to use this presence to pursue further acquisition and recruitment opportunities in the region.”
Hudson Green & Associates principal Ian Hudson says: “We have seen a lot of businesses come and go and the trouble with buying up client banks is, quite simply, running a big business is not as easy as running a small business. If companies like AFH cannot deliver good service to both existing clients and those that they acquire going forwards, it becomes a house of cards.”