AFH Financial Group has announced it has completed the acquisition of Broadleaf Financial Services Limited, an IFA business introduced by Gunner & Co., based in the Wirral, for a maximum consideration of £3.2 million, subject to performance criteria of Broadleaf during the two year earn out period.
Under the terms of the acquisition, four advisers from Broadleaf will join AFH together with their support staff, bringing their clients and £140 million of Funds Under Management. The initial consideration for the acquisition is £1.7 million and was paid from existing cash reserves, with the balance payable in cash over a 26-month period. Following the acquisition, John Shaw, principal adviser and Director and one of the founders of Broadleaf, together with his fellow directors, have retired from the business.
Gwill Evans, senior broker at Gunner & Co. responsible for this transaction, commented: “Gunner & Co. identified that there was an obvious synergy between Broadleaf and AFH, which has led to this successful and mutually beneficial acquisition. It was a pleasure to work on this deal realising Broadleaf’s aspirations and continuing to grow AFH’s footprint in the UK”
Commenting, Alan Hudson, Chief Executive of AFH, said: “This acquisition follows the recent acquisitions of Mulberry Independent Financial Advisers and AE Garment, bringing the total committed spend to £10.4 million since the Convertible Loan Stock placing in July 2019. The acquisition has been completed on a similar attractive multiple to previous transactions and extends the AFH footprint in the North West of the UK. “As previously reported, in this period of economic and political uncertainty we remain focused on driving the organic growth of our business by providing professional and cost effective services to our clients and, in-turn, enhancing profitability. The Company remains well capitalised to take advantage of the previously identified acquisition opportunities and to continue its record of delivering profitable growth and enhanced shareholder value.”
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