Deal hungry wealth management firm AFH Financial Group has made its second acquisition of the month and its seventh since switching to AIM last summer.
The Bromsgrove-based firm has bought fellow Worcestershire outfit KL Plester Financial Services for £1.7 million which follows its double deal to acquire Oxfordshire-based Roxborough Consultancy and the assets of First Class Financial Management in West Bromwich.
This latest deal with the Kidderminster company adds about £600,000 of recurring annual revenue to AFH's books.
Jon Rowe and Keith Plester's clients will be taken over by AFH's existing advisers following their retirement on completion.
Peter Machin, a director and shareholder of KL Plester, will join AFH with immediate effect as a financial adviser.
Under the terms of the acquisition, the maximum consideration payable by AFH is £1.7 million in cash with an initial payment of £745,200 and two tranches worth up to £972,000 dependent upon the performance of Plester over the next two years.
The consideration will be satisfied from AFH's existing cash resources.
AFH chief executive Alan Hudson said: "It is good that the flexibility of our acquisition model accommodates the varying needs of the principals within the business.
"In this case, allowing the retirement of Jon and Keith, and the continuance of Peter's career within a larger group, with all three able to crystallise the value in their business.
"I look forward to working with Peter in the years to come."
