UK-based wealth manager AFH Financial has completed the acquisition of IFA firm Broadleaf Financial Services for a maximum consideration of £3.2m ($4m, €3.61m), subject to performance targets.
This is the firm’s third deal in a week after it bought Mulberry Independent Financial Advisers and AE Garment on 13 September 2019.
Four advisers from Wirral-based Broadleaf will join AFH together with their support staff, bringing their clients and £140m of funds under management.
The initial consideration of £1.7m was paid from existing cash reserves, with the balance payable in cash over a 26-month period.
Following the acquisition, John Shaw, principal adviser and director, one of the founders of Broadleaf and his fellow directors have retired from the business.
Money left in the bank
Alan Hudson, chief executive of AFH, said the three deals this week brings the firm’s “total committed spend to £10.4m since the convertible loan stock placing in July 2019“.
“The acquisition has been completed on a similar attractive multiple to previous transactions and extends the AFH footprint in the north west of the UK.
“As previously reported, in this period of economic and political uncertainty we remain focused on driving the organic growth of our business by providing professional and cost-effective services to our clients and, in-turn, enhancing profitability.
“The company remains well capitalised to take advantage of the previously identified acquisition opportunities and to continue its record of delivering profitable growth and enhanced shareholder value.”
This is AFH’s fourth 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.
The wealth firm reported an 87% rise in profits before tax for the six-month period ending 30 April 2019, suggesting its strategy is bearing fruit.