AFH buys pair of West Midlands IFAs for up to £1.4m
FUM boosted by £50m
01 August 2017
AFH has completed the acquisition of the assets of Arden Financial Consultants and the share capital of Martin Cooper Wealth Management, both based in the West Midlands, for a combined maximum price of £1.4m
The deals see Kevin Hobbs, Steve Down and John Kirkland join the financial planning-led wealth management business as advisers while the other vendors will retire and their clients will be serviced by existing AFH advisers.
According to AFH, the acquisitions are expected to contribute an aggregate of approximately £430,000 of recurring revenue to the business and add £50m of funds under management.
It added that the initial consideration for the acquisitions would be £0.7m in cash, funded from the AFH’s existing cash resources. Further deferred consideration of up to £0.7m in cash will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets and business acquired.
AFH chief executive Alan Hudson (pictured) said: “These two acquisitions – our 11th and 12th purchases of IFA businesses during the year – confirm the continued high level of activity we are seeing in the market.
“They continue our strategy of providing a stable and well-capitalised business within which successful IFAs can continue to provide their clients with professional advice and investment opportunities, both on a personal basis and in retirement.”
Last month, AFH bought Granville Bates, Johnson Birkett and G-Force Financial for a combined price of up to £1.9m. In June, it acquired London-based IFA Parker Sage in a deal worth up to £5.6m and protection specialist Eunisure for up to £4.5m.