News

4
Jul

AFH buys three retiree businesses

Bromsgrove-based national acquirer AFH has announced a further three acquisitions – making that a total of 5 acquisitions within the month. The three firms announced this week align to AFH’s ‘Buy and Go’ offering, developed for retiring IFAs and financial planners.
Cotswold-based Granville Bates LLP, Johnson Birkett Limited in Yorkshire and G-Force Financial Limited based in Cheshire have individually sold the assets of their businesses to AFH, and the principals will retire, once they have completed a handover. Moving forward, their clients will be serviced by existing AFH advisers.
Under the terms of the Acquisitions, the combined maximum purchase price is £1.9m and the acquisitions are expected to contribute an aggregate of approximately £500,000 of recurring revenue to AFH.
The initial consideration for the three acquisitions totals £1.0m in cash, which is funded from AFH’s existing cash resources. Further deferred consideration of up to £0.9m in cash will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets acquired.
Commenting, Alan Hudson, Chief Executive of AFH, said:
“The acquisitions represent our eighth, ninth and tenth this year and demonstrate the increasing level of activity that we are seeing in the market. The client base reflects the continued national expansion of AFH and will be integrated in line with our established model.”
“The Company continues to seek high quality businesses of all sizes that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders.”
To understand more about the various acquisition approaches AFH takes, contact Gwill Evans at Gunner & Co. – gwill.evans@gunnerandco.com