News

Clifton Asset Management
28
Aug

AFH gains 26 advisers in £5.1m deal

The Board of AFH, is pleased to announce the completion of the acquisition of the client portfolios of HTH (Group) Limited and its subsidiary companies Thomas Heald Limited and Thomas Heald Solutions Limited based in Chesterfield with satellite offices in Leeds and Doncaster. As a result of the transaction 26 advisers including the principals Nick Thomas, Chris Holland and Nick Heald, together with their support staff, will join AFH.
Under the terms of the acquisition, the maximum purchase price is £5.1m dependent upon performance criteria of the businesses acquired. During the year ended 31 March 2018 the combined business reported a Profit before Tax of £365,000. However, on a pro-forma forward facing basis the EBITDA of the business is £1.0m with targeted profitability of £1.25m.
The initial consideration for the acquisition is £2.3m in cash, funded from the Company’s existing cash resources. Further deferred consideration will be payable in cash over the next 26 months, subject to performance criteria of the businesses being achieved.
Commenting, Alan Hudson, Chief Executive of AFH, said:
“Our eleventh and largest acquisition of the financial year is the purchase of an established IFA business in Derbyshire and Yorkshire providing both financial planning and mortgage and protection services to a large client base. I am pleased to welcome Nick Thomas, Nick Heald and Chris Holland, together with their team, to AFH. I look forward to working with them in the future and to provide their existing clients with the benefits of the full range of AFH services. The market remains buoyant and our pipeline of opportunities continues to expand across the country.”
Gunner & Co. work with IFAs looking to sell their business, and can give you more information on the AFH proposition is you wish – contact louise.jeffreys@gunnerandco.com