AFH completes sixth acquisition of year in Mark Hughes & Assocoates

Financial planning-led wealth management firm AFH Financial Group confirmed the completion of the acquisition of Mark Hughes & Associates based in Hertfordshire on Tuesday.

The AIM-traded firm said that following the acquisition, Hughes, together with his local team, would join AFH as an adviser.

Under the terms of the acquisition, the purchase price was expected to be between £1.2m and £1.6m based on the ongoing profitability of the business, subject to the fulfilment of certain financial targets.

The acquisition was expected to contribute an aggregate of approximately £0.6m of revenue per annum to the company, whilst adding more than £50m to funds under management.

AFH’s board said the initial consideration for the acquisition was £0.7m in cash, funded from the company's existing cash resources.

Further deferred consideration would be payable in cash over the next 26 months in two tranches, subject to performance criteria of the business acquired being achieved.

“I am pleased to report our sixth acquisition of the financial year which further strengthens our presence in the Home Counties,” said chief executive Alan Hudson.

“I am pleased to welcome Mark and his team to AFH and look forward to working with him to continue our growth in this region for the benefit of our new clients and to increase shareholder value.”