It has bought Twickenham-based Mulberry Independent Financial Advisers and Hemel Hempstead-based of AE Garment Independent Financial Services.
The two deals will bring a combined £215m funds under management, raising AFH’s total above £5.6bn.
The initial consideration for the deal was £2.3m, paid from existing cash reserves.
The maximum price could reach £5.3m, which will be payable in cash over a 26-month period, dependent on performance targets.
The four advisers, support staff and clients of Mulberry Independent Financial Advisers will join AFH.
It has around £170m in funds under management.
AFH paid an initial consideration of £1m for AE Garment, a sum that could reach £1.9m.
Further deferred considerations will be payable in cash over the next 26 months, subject to business performance.
Following the acquisition, Tony Garment will retire from the business, while his clients will be allocated to existing AFH advisers.
AE Garment has around £45m in funds under management.
Continuing the trend
Alan Hudson, chief executive of AFH, said: “The announcement of these latest acquisitions follows our recently completed £15m placing in July 2019.
“Notably, the acquisitions have been completed on attractive, value-enhancing multiples, in line with our business model and those negotiated in previous transactions.
“We continue to undertake due diligence on the pipeline of acquisition opportunities that were referenced in the placing announcement and look forward to updating the market in due course.
“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.
“Following the placing, the company retains significant levels of cash and remains well placed in this period of economic and political uncertainty to continue its record of delivering profitable growth and enhanced shareholder value.”
This is AFH’s third acquisition of 2019, as it previously bought financial planner Hayburn Rock Group in January 2019.
In 2018, it purchased 16 businesses across the UK, including CTL Three for £10m in December 2018, its largest acquisition to date.
It reported an 87% rise in profits before tax for the six-month period ending 30 April 2019, suggesting its strategy is bearing fruit.