(Alliance News) - AFH Financial Group PLC said Wednesday it has acquired independent financial adviser firm Broadleaf Financial Services Ltd for a maximum of GBP3.2 million.
Under the deal, Liverpool-based Broadleaf will see its four advisers, and supporting staff, join AFH. Broadleaf currently has GBP140 million funds under management.
The initial consideration is for GBP1.7 million - which AFH paid from existing cash resources, and will be paid over 26 months. The remaining amount is subject to Broadleaf's performance during a two year earn out period.
"This acquisition follows the recent acquisitions of Mulberry Independent Financial Advisers and AE Garment, bringing the total committed spend to GBP10.4 million 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," said Chief Executive Alan Hudson.
Hudson continued: "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."
Shares in AFH Financial were 1.4% higher in London on Wednesday at 295.00 pence each.