Wealth consolidator AFH Financial Group has acquired two IFA businesses for a maximum consideration of £7.2m.
One of the acquired businesses is Mulberry Independent Financial Advisers, which is based in Twickenham.
The deal, worth up to £5.3m, includes an initial payment of £2.3m. The remaining sum will be paid in cash over a 26-month period based on the performance of the acquired business.
AFM also acquired AE Garment Independent Financial Services, headquartered in Hemel Hempstead, in a deal valued up to £1.9m.
The consolidator paid £1m upfront, and will pay the remainder in cash based on performance over a period of 26 months.
Mulberry brings funds under management (FUM) worth £170m while AE Garment brings FUM of £45m. The acquisitions take AFH’s total FUM to more than £5.6bn.
Commenting on the two acquisitions, AFH CEO Alan Hudson said: “The Company continues to enjoy strong organic inflows of funds from existing and new clients with low redemptions. During the current year, double-digit gross inflows continue to be achieved whilst outflows, including pension drawdowns, remain below 2%.
“As we continue to build AFH into the leading financial planning led wealth management firm in the UK, we are primarily focused on driving the organic growth of our business by providing professional and cost-effective services to our clients and, in turn, enhancing profitability.”
In July this year, AFH secured £15m to support its acquisition activities. The money was raised through placing convertible unsecured loan stock (CULS), with the initial conversion price being 420 pence.
Earlier this year, AFH acquired West Midlands-based Hayburn Rock Group and its subsidiary companies.
Last December, AFH made the largest-ever acquisition in its history by buying Hull-based advisory firm CTL Three and its subsidiaries in a deal worth up to £10m. The acquired business had more than £530m in FUM.