AFH, a leading financial planning led wealth management firm, is pleased to announce the acquisition of the assets of David Rushton Associates Limited (“David Rushton”), a Lancashire based IFA. Following the acquisition David Rushton, the vendor, will join AFH.
Under the terms of the acquisition, the maximum consideration payable by AFH is £298,125, representing approximately 1.8% of the Funds under Management (“FUM”). An initial cash consideration of £168,875 has been paid upon completion, satisfied from the Company’s existing cash resources. Further deferred consideration of up to £140,625 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets acquired from David Rushton.
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, and follows comments in our pre close trading statement on 14 November. David Rushton will add approximately £16.5m to AFH’s funds under management.
Commenting, Alan Hudson, Chief Executive of AFH, said:
“This acquisition will strengthen our position in the North West and I look forward to working with David to continue the development of AFH in the region.”
“The acquisition of the assets of David Rushton follows the strategy restated in our recent trading update 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 of all sizes that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders.”