Financial planning and wealth management firm AFH has acquired Bay Financial Management, an IFA based in Honiton, Devon.
As a result of the acquisition, Seamus Coleman, Simon Durant and Nigel Hull have joined the AFH Group.
Under the terms of the acquisition, the maximum consideration payable by AFH is GBP1.4 million based on the performance of Bay over the next 24 months.
The consideration for the acquisition is to be paid in cash. The initial consideration has been satisfied by a payment upon completion of GBP595,000 funded from the company’s existing cash resources.
Further deferred consideration of up to GBP805,000 will be payable over the next 24 months in two tranches and dependent upon set performance criteria of Bay over the period.
Bay will add approximately GBP73 million to AFH’s funds under management.
Alan Hudson, chief executive of AFH, says: “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 year and will be integrated in line with our established model to enhance shareholder value during the current financial year. We continue to have a strong pipeline of future acquisition opportunities.”