The firm, based in Worcestershire, has acquired Cheltenham-based IFA Specialist Solutions, which has approximately £80m funds under advice.
AFH has agreed to pay an initial consideration of £100,000 from its existing resources, to be supplemented with up to £625,000 in deferred consideration over the next year.
Under the agreement AFH will purchase the assets and goodwill of Specialist Solutions, but is not assuming any advice liability incurred prior to the acquisition.
Back in November 2011 AFH announced the acquisition of three midlands-based IFAs for a total cash consideration of £371,500 and in April it took over the Arden Court Group, a Nottingham-based IFA for an initial consideration of £362,000. Three other acquisitions have also been completed in the past six months, although AFH could not immediately give details of these.
Alan Hudson, chairman and CEO of AFH has previously said the acquisitions are in line with his strategy to take advantage of the opportunities arising from the fragmented nature of the IFA market and the additional burdens imposed on IFAs by RDR.
Following this most recent takeover AFH’s adviser count will be boosted to 88, up from 53 at the time of the company’s IPO in June last year.
AFH said Specialist Solutions reported turnover of £1.16m in the year to September 2011, with gross profit of £498,000.
