AFH has acquired Lancashire-based IFA David Rushton Associates for a total of £298,125.
The move will add £16.5m to AFH's funds under management (FUM) and see vendor David Rushton join the firm.
AFH has paid £157,500 in cash upon completion of the deal, with a further £140,625 payable over the next 26 months, depending on the firm's performance.
The acquisition marks AFH's first corporate transaction of the current financial year (from November). In October it acquired East Anglia-based CRS financial planning in a deal that brought £25m of funds to the group.
The firm reiterated its strategy of making selective acquisitions only in a recent trading update. It said it plans to expand nationally while making use of central investment and support functions.
AFH chief executive Alan Hudson said: "This acquisition will strengthen our position in the North West and I look forward to working with David to continue the development of AFH in the region.
"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."
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