Harwood buys Southampton-based IFA for £4.6m

Harwood Wealth Management Group, a leading UK-based financial planning and discretionary wealth management business, is pleased to announce the acquisition of AE Financial Services Ltd, an established chartered Independent Financial Advisory firm based in Southampton from AE Insurance Services Ltd, a company jointly owned by David Hayward and Michael Wright. The purchase price for the Acquisition is £4.6 million and has been approved by the FCA.
The acquisition provides Harwood with a strategic hub in Southampton and enhances the Group’s already established and growing presence along the South Coast. AE Financial will continue to operate as a standalone brand and will benefit from Harwood’s processes, technology, and investment strategies. David Hayward, director of AE Financial, will remain with the company. This is the Group’s most significant acquisition to date and demonstrates Harwood’s growing scale and capabilities.
For the year ended 31 December 2017, AE Financial reported revenue of £1.3 million and profit before tax of £0.5 million, both unaudited. The business has Assets Under Influence of £130 million.
The initial consideration of £2.4 million plus cash balances has been paid on completion, satisfied through the Company’s existing cash resources. Further deferred consideration of up to £2.2 million will be payable in two tranches over next 24 months, subject to performance criteria of AE Financial being achieved.
David Hayward, Director of AE Financial said:
“We are very pleased to be joining such a well-respected and successful Group. I am confident that Harwood will be a perfect fit for our team and allow us to develop the business and continue to provide high quality and dedicated advisory services to our clients. We very much look forward to joining the team.”
Peter Mann, Non-executive Chairman of Harwood Wealth Management Group, said:
“AE Financial is a strong addition to the Group and we look forward to welcoming both the team and clients to Harwood Wealth. As well as further augmenting our presence in a key area of the UK, this acquisition continues to build upon our successful model of acquiring IFA firms who share our values and culture. We look forward to continuing to deliver on our strategy, driving growth organically and through further M&A in the period ahead.”
Gunner & Co. have completed a number of acquisitins with Harwood, if you would like to know more about selling your business contact Gwill.evans@gunnerandco.com