Wealth consolidator AFH Financial Group has acquired Hull-based advisory firm CTL Three in a transaction worth up to £10m, marking the largest-ever purchase in its history.
AFH also bought CTL subsidiaries, namely The Insurance Partnership Financial Services, PCWM, IFA Professional Planning, Private Client Wealth Management (Yorkshire) and Kirk Ella Investments.
The transaction adds over £530m in funds under management to AFH’s books, taking its total assets to more than £5bn.
AFH will make initial cash payment of £4.7m for the deal. The cash component will be financed through its existing liquidity.
Besides, the consolidator will issue 26,178 shares worth £100,000 to CTL director Paul Hodgson at 382 pence each.
The balance consideration will be paid in cash over the coming 26 months, based on the performance of the acquired entity.
Hodgson, along with Paul Newman, Shane Beardsley, Victoria Hicks, 22 advisers and their support staff will migrate to AFH as part of the deal.
AFH CEO Alan Hudson said: “The acquisition of CTL is our third transaction of the year and significantly expands AFH’s national footprint with over 240 advisers working across the UK and over £5bn of FUM. At the start of the 2017 financial year, the Board set itself three medium term financial aspirations: FUM of greater than £5bn, revenues of £75m per annum and underlying EBITDA margin of 20% on revenue.
“The acquisition of CTL takes our FUM to above £5bn and we remain confident of achieving the remaining targets. This is our third acquisition in the North East since June 2018 and as a result AFH now have over 50 advisers located in the region.”
In the past month along AFH has completed the acquisition of CWP Financial Services, a Kent-based advisory firm and Premier Wealth Management Harrogate (PWMH), a York-based wealth business.