Wealth management firm AFH has acquired the assets of CRS Financial Planning (CRS), an East Anglian based IFA.
Following the acquisition Chris Stapleton, the vendor, will retire from the business and clients will be serviced by existing AFH advisers.
Under the terms of the acquisition, the maximum consideration payable by AFH is GBP663,670, representing approximately 2.6 per cent of the funds under management (FUM).
An initial cash consideration of GBP378,920 has been paid upon completion, satisfied from the company’s existing cash resources. Further deferred consideration of up to GBP284,750 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets acquired from CRS.
The acquisition is AFH’s first corporate transaction of the current financial year, consistent with its stated strategy of making carefully selected acquisitions which will be value enhancing. CRS will add approximately GBP25 million to AFH’s funds under management.
Alan Hudson, chief executive of AFH, says: “The acquisition of the assets of CRS follows the strategy, established by the company when we listed on AIM in June 2014, of making selective acquisitions to develop our expansion nationally and leverage our central investment and support functions.
“The company continues to seek high quality businesses that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders.”