Consolidator AFH has made its seventh acquisition this year, buying up London-centered IFA Parker Sage Independent Financial Advisers.
The four-adviser firm, which has offices in Canary Wharf, The City of London and Peterborough, has sold for an initial £1.88m in cash and £375,000 in AFH shares.
Parker Sage may earn almost twice as much again, £3.35m, over the next two years based on performance targets being met.
The maximum total consideration, £5.6m, is more than three and a half times recurring income at the firm, which was £1.5m for the year ended August 2016.
Parker Sage generated revenue of £2.2m in that period and reported pre-tax profit of £1.2m.
However, in a statement to the stock exchange this morning, AFH said that on the basis of trading since then, ongoing revenues could top £3m for the year to this September.
Three Parker Sage advisers will join AFH as part of the deal.
AFH chief executive Alan Hudson says: “Parker Sage’s directors are very successful advisers who share both our values and vision for the future of the sector. I look forward to working with them in many years to come.”
AFH acquisitions this year have varied in geography, from Aberdeenshire-based Aberdeen Wealth Management and Devon-based Shield Direct in January, to Honiton-based IFA Bay Financial Management the following month.
AFH first entered London in February by acquiring south west London IFA Taylor Frost Wealth Management, its third purchase that month.