AFH Financial buys IFA firms in Scotland and South West for £1.07m

19th Jan 2017 08:38

(ShareCast News) - AIM-listed wealth management company AFH Financial Group has bought independent financial advisory firms, Shield Direct and Aberdeen Wealth Management, for a collective £1.07m.The acquisitions are the company's second and third transactions of the current financial year, following the recent acquisition of independent advisory firm David Rushton, and will add about £44m to AFH's funds under management.The £1.07m combined consideration represents about 2.45% of the funds under management bought.Aberdeen Wealth was bought for £556,500, with an initial £294,000 already paid and a deferred payment of up to £262,500 will be made over the next 26 months in two tranches, depending on the performance of the assets bought.While Devon-based Shield was bought for £520,000, with £272,000 already paid and a further £248,000 will be paid over the next 26 months, also in two tranches, depending on the performance of the assets.AFH's chief executive, lan Hudson said the acquisition of Aberdeen Wealth Management will strengthen the company's position in Scotland, while the Shield acquisition will bring a number of high quality clients spread across the South West and West Midlands."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."