Fri, 13 Sep 2019 | BUSINESS SALE
AFH Financial Group, a listed wealth management firm headquartered in Bromsgrove, has successfully completed the acquisition of AE Garment Independent Financial Services based in Hemel Hempstead, and Twickenham-based Mulberry Independent Financial Advisers.
AFH is set to acquire the two companies for a maximum consideration of £7.2 million.
An initial consideration of £2.3 million was paid for Mulberry from AFH’s cash reserves, with a maximum purchase price pegged at £5.3 million depending on performance.
Similarly, an upfront payment of £1 million was paid for AE Garment Independent Financial Services, with £1.9 million listed as its top price.
Chief executive of AFH Financial Group, Alan Hudson, said: “The announcement of these latest acquisitions follows our recently completed £15 million placing in July 2019.
“Notably, the acquisitions have been completed on attractive, value-enhancing multiples, in line with our business model and those negotiated in previous transactions.
“We continue to undertake due diligence on the pipeline of acquisition opportunities that were referenced in the placing announcement and look forward to updating the market in due course.
“The company continues to enjoy strong organic inflows of funds from existing and new clients with low redemptions.
“During the current year, double-digit gross inflows continue to be achieved whilst outflows, including pension drawdowns, remain below 2 per cent.”
The two deals are expected to bring in £215 million worth of funds to AFH’s management, raising its total to more than £5.6 billion.
Hudson added: “As we continue to build AFH into the leading financial planning led wealth management firm in the UK, we are primarily focused on driving the organic growth of our business by providing professional and cost-effective services to our clients and, in turn, enhancing profitability.
“Following the placing the company retains significant levels of cash and remains well placed in this period of economic and political uncertainty to continue its record of delivering profitable growth and enhanced shareholder value.”
This well-established Kent-based practice boasts a high-quality client base with strong revenue potential, thanks to average fees exceeding £1,700 and clients that predominantly consist of limited companies.
Working with a prominent client in the investment banking industry, the company delivers turnkey project management services to support its client’s real-estate programme.
This is a prime opportunity to acquire a leading provider of environmental noise and air quality services with a robust presence in both Northern Ireland and the Republic of Ireland.
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