Wealth Management firm AFH Financial has acquired financial planner Hayburn Rock Group and its subsidiary companies, based in Stourbridge, West Midlands.
The deal will see Hayburn managing director Stephen Perks, together with nine advisers, join AFH and continue to support Hayburn’s existing client base.
Under the terms of the deal, the maximum purchase price is £3.5m ($4.5m, €3.9m) depending upon the performance criteria of the businesses acquired.
Hayburn will bring over £100m of funds under management to AFH.
On the prowl
AFH undertook a massive acquisition spree during 2018, which saw the firm buy no fewer than 17 businesses.
Speaking to International Adviser in December, a spokesperson confirmed that there is money in the bank and the acquisitions are not being funded by debt.
Alan Hudson, chief executive of AFH, said: “The acquisition of Hayburn is our fourth transaction this financial year [which runs from October] and further consolidates AFH as a financial planning-led wealth management firm in the West Midlands and indeed the UK.
“Hayburn is a local business to AFH, which should enable an efficient integration process.”
Details of purchase
The initial consideration for the acquisition is £900,000 in cash, funded from the company’s existing cash resources.
Further deferred considerations will be payable in cash over the next 29 months, subject to “enhanced performance criteria based on post completion post synergy profitability”.
