Harwood Wealth Management Group has bought Southampton IFA AE Financial Services for £4.6m.
An initial payment of £2.4m plus £1.54m of net cash balances was paid on completion of the deal and a deferred payment of £2.2m will be paid in two lots over the next 24 months, dependent on AE’s performance.
The acquisition has been approved by the FCA.
AE Financial will continue to operate as its own brand and director David Hayward will stay with the business.
Hayward says: “I am confident Harwood will be a perfect fit for our team and allow us to develop the business and continue to provide high quality and dedicated advisory services to our clients.”
Harwood Wealth Management Group non-executive chair Peter Mann adds: “This acquisition continues to build upon our successful model of acquiring IFA firms who share our values and culture. We look forward to continuing to deliver on our strategy, driving growth organically and through further M&A in the period ahead.”
For the year ended 31 December 2017, AE Financial reported revenue of £1.3m and profit before tax of £0.5m. The business has assets under management of £130m.