IFA consolidator AFH Financial is targeting expansion into London and the south-east after making six acquisitions in the last 12 months.
In a trading update, published today, the firm, whose funds under managements have now hit £900m, says it is still focused on its base in the West Midlands but has made in-roads into Scotland, East Anglia and the south-west this year.
The firm says it has noticed more IFAs available for purchase and the trend is expected to continue throughout 2015. As a result it is targeting more deals with cash balances of £5m but also gearing up by raising money through fixed interest instruments.
AFH has made six acquisitions in the last year costing an average of £350,000 each, financed partly by a £3m equity injection in April and June.
The company’s acquisition model is based on a capped earn out over a two year period with the initial consideration set at approximately 50 per cent of the anticipated total value.
AFH chief executive Alan Hudson says: “The company’s results for 2014 will represent another important milestone in AFH’s journey to become one of the UK’s leading IFAs.
”The board continues to execute its strategy of making selective acquisitions and increasing the breadth of AFH’s national footprint. I look forward to updating the market in March, a statement which will reflect continued hard work and strong performance during challenging economic times.”