AFH Financial has acquired the assets of Aberdeen Wealth Management and Shield Direct.
AFH paid a maximum of £556,500 for Aberdeen Wealth Management, based in Aberdeen, which includes an initial cash consideration of £294,000. A further deferred consideration of up to £248,000 will be payable in cash over the next 26 months in two tranches. This will be dependent upon performance criteria of the assets acquired.
For Shield Direct, based in Devon, AFH paid a maximum consideration of £520,000, made up of an initial cash consideration of £272,000. A further deferred consideration of up to £248,000 will be payable in cash over the next 26 months in two tranches, again dependent upon performance criteria of the assets acquired.
The initial consideration for both deals will be satisfied from the AFH’s existing cash resources.
For AFH, the deals add around £44m to Funds under Management. Under the terms of the acquisitions, the maximum consideration payable by AFH of £1.076m represents approximately 2.45% of the FUM acquired.
Following the deal, one adviser, Mike Murray, will join AFH and be based in Aberdeen. Other advisers have retired and their clients will be handled by current AFH advisers.
Chief Executive of AFH Alan Hudson said: “The acquisition of Aberdeen will strengthen our position in Scotland and I look forward to working with Mike to continue the development of AFH. The acquisition of Shield will bring a number of high quality clients spread across the South West and West Midlands.
“The acquisition of the assets of Aberdeen and Shield follows the recently reported acquisition of the assets of David Rushton and demonstrates the increasing level of activity that we are seeing in the market.
“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.”