AFH has completed the acquisition of Core Financial Services, paying up to £7.7m in a deal that includes the Maidstone-based IFA, parent company Core Financial Holdings and the assets of Core Corporate Planning.
As a result of the transaction, which adds £230m to AFH's funds under management, Core CEO Mark Sutton together with nine advisers and their support staff, will join the group.
AFH revealed the initial consideration for the purchase was £3.2m in cash, funded from the company's existing cash resources. Further deferred consideration will be payable in cash over the next 26 months, subject to "enhanced performance criteria" of the business being achieved.
It added: "For the 12-month period ended 31 March 2018, the combined Core businesses reported revenues of £3.8m and profit before tax of £180,000. On a post acquisition pro-forma basis, the business would have generated an estimated profit before tax in excess of £1.4m."
16th acquisition
AFH chief executive Alan Hudson (pictured) said the 16th acquisition of the group's financial year significantly expanded its position in the south east of the UK, adding: "I am pleased to welcome Mark and his team to AFH and look forward to working with them to further the development of the AFH brand and continue our growth for the benefit of our new clients and to increase shareholder value."
Last week, AFH bought the client portfolio of Wiltshire-based Emery Little Financial Services for up to £1.6m and also paid £250,000 to the administrators of Beaufort Securities to acquire the client portfolios of the collapsed discretionary fund manager's Colwyn Bay office.
A busy period for the group has also seen it buy Bedfordshire-based IFA Ashton House for up to £2.6m, West Sussex-based advice firm Harvey Curtis for £2.6m and Devon-based Lyn Financial Services for a maximum price of £4.2m, as well as the client portfolios of HTH and its subsidiary companies Thomas Heald and Thomas Heald Solutions for a maximum price of £5.1m.
