Consolidator AFH has picked up another acquisition to begin 2019, buying up West Midlands advice firm Hayburn Rock Group.
The Stourbridge-based adviser, which has over £100m of funds under management, has sold to AFH for a maximum of £3.5m.
Pre-tax profit for Hayburn Rock was £400,000 in 2017 on the back of £2.1m in revenues.
Managing director Stephen Perks will be one of ten advisers moving across to AFH, continuing to advise their existing clients.
The deal is structured with £900,000 coming as an up-front payment, with the remaining £2.6m “dependent upon performance criteria of the business acquired” over the next 29 months.
AFH does not give specific details of how the deferred payouts are structured when announcing its deals. For Hayburn Rock, AFH notes the payments will be “subject to enhanced performance criteria based on post completion post synergy profitability”.
AFH chief executive Alan Hudson says: “The acquisition of Hayburn…further consolidates AFH as a leading financial planning led wealth management firm in the West Midlands and indeed the UK. Hayburn is a local business to AFH which should enable an efficient integration process. I am pleased to welcome Stephen and his team to AFH and look forward to working with them to provide their existing clients with the benefits of the full range of AFH services and to increase shareholder value.”