Wealth manager AFH Financial has bought Bay Financial Management, an IFA firm based in Honiton, Devon, in a deal that adds approximately £73m to AFH's funds under management and could ultimately be worth up to £1.4m, depending on performance.
According to AFH, an initial payment of £595,000 was made from its existing cash resources as the deal completed. Further deferred consideration of up to £805,000 will be payable over the next 24 months in two tranches, depending on set performance criteria for Bay over the period.
As a result of the acquisition, Seamus Coleman, Simon Durant and Nigel Hull have joined the AFH Group. AFH chief executive Alan Hudson said: "This acquisition continues to strengthen our presence in the South West and I look forward to working with Seamus, Simon and Nigel to further develop AFH.
"The acquisition of Bay is our fifth acquisition this financial year and will be integrated in line with our established model to enhance shareholder value. We continue to have a strong pipeline of future acquisition opportunities."
Earlier this month, AFH bought South West London-based IFA Taylor Frost Wealth Management for £1.25m. This followed the buyouts of Aberdeen Wealth Management and Shield Direct in January while, in December, the group acquired Lancashire-based IFA David Rushton Associates.
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