Consolidator AFH has bought its fourth financial advice firm in just two weeks.
Bedfordshire-based Ashton House IFA Limited becomes the latest firm to join AFH and is the 13th acquisition it has made this year.
AFH will pay up to £2.6m for Ashton House. Adviser Tony James, the sole IFA at the firm according to its FCA Register entry, will continue to advise his existing client base.
The deal comes with a £1.05m cash payment up front, with the rest payable based on how the firm performs after acquisition. The value is based on pre-tax profits for Ashton House of £370,000. Post-acquisition this is expected to increase to £500,000.
In just cash payments alone, AFH has spent £6.7m acquiring the four firms it has picked up in the last two weeks, which could roughly double if all meet their performance criteria over AFH’s standard 26 month monitoring period.
AFH chief executive Alan Hudson says the numberof recent acquisitions “reflects the activity we are seeing in the sector”.
He adds: “The acquisition of Ashton House extends AFH’s client base and coverage within the Home Counties and complements other acquisitions made in 2018…I am pleased to welcome Tony to AFH and I look forward to working with him to develop the business and provide his existing clients with the benefits of the AFH proposition.”