New Model Adviser - For professional financial planners

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

AFH to swell acquisition war chest with £15m fund raise

Advice consolidation giant AFH plans to raise another £15 million in a fresh share placing to fuel a fresh ‘pipeline; of advice acquisitions.

AFH to swell acquisition war chest with £15m fund raise

Advice consolidation giant AFH plans to raise another £15 million in a fresh share placing to fuel a fresh ‘pipeline; of advice acquisitions.

The AIM-listed business which describes itself as a ‘financial planning led investment management firm’ has announced a placing of new ordinary shares ate price of 370 pence per share.

In a market statement AFH, led by chief executive Alan Hudson (pictured), said the net proceeds of the placing would be used to ‘execute the company’s acquisition pipeline.’

AFH has acquired 16 firms over the past year, spending £16 million of ‘initial consideration’. AFH’s deals are typically split between an upfront payment and payments contingent on meeting performance targets.

It said: ‘The board intends to continue to execute its strategy of making selective acquisitions and increasing AFH's national footprint, while providing a professional and cost effective service to its clients.’

AFH said it remains ‘remains well positioned to take advantage of consolidation opportunities in the IFA market and currently has a strong pipeline of potential acquisitions that are under negotiation and in due diligence’.

AFH’s 16th acquisition was announced at the start of this month, buying Maidstone-based advice firm Core Financial Services. The deal will add £230 million of assets to AFH.

The maximum price of the deal could be £7.7 million. The initial amount paid will be £3.2 million, with further payments dependent on ‘enhanced performance criteria of the business being achieved’ over the next 26 months.

In September AFH  bought the client assets of collapsed broker and discretionary fund manager Beaufort Securities' Welsh office in a deal worth up £250,000.

Share this story

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
More Content
7013.88 -24 0.34% 04:35
More Content
More Content

BUSINESS

Explain your methods for a successful switchover

Explain your methods for a successful switchover

Like changing a football club manager, firms implementing new technology must ensure everybody is on board to facilitate a smooth transition.

ADVICE

Communication key to delivering fair collective pensions

Communication key to delivering fair collective pensions

The government wants to avoid any intergenerational unfairness in creating CDC schemes, but savers must be made aware this could mean cuts to their pension pot.

twitter_banner

INVESTMENT