AFH, the expanding financial planning consulting firm set up by a Chartered Financial Planner, has purchased the Financial Healing Center Thomas Heald, manufactured by Yorkshire Chartered Financial Planning, for £ 5 million.
Thomas Heald has 26 financial advisors and mortgage staff and more than 1,100 customers in Yorkshire and the East Midlands.
AFH says the deal will bring its funds under management to more than £ 3.5 billion and the acquisition is one of the largest to date. AFH has taken over 11 offices in the 12 months.
Nick Thomas and Nick Heald founded Thomas Heald in 2009 and it is one of the largest independently managed business activities in Yorkshire.
Mr. Thomas said: "This is a good deal for our customers, who will receive the same service, delivered by the same consultants and staff, but with the added benefit of AFH's back office support and investment expertise." It's also great news for our advisers, for whom all this support means more time to do what they like – helping customers.
"We have been approached many times by people who want to buy Thomas Heald, but we have never met anyone who felt comfortable doing business.
"For us, our customer proposition is of the utmost importance and with AFH we have found people who see things in the same way: reducing – and now scrapping – platform costs, making investing more accessible, always aimed at improving the results for our customers. customers: AFH and we fit well together. "
The deal is one of AFH & # 39; s largest so far and means that the group now has more than 180 advisors covering the UK.
Under the terms of the deal, Thomas Heald's maximum purchase price is £ 5.1 million, depending on performance. During the year ending March 31, 2018, the company reported a profit before tax of £ 365,000. On a pro-form & forward facing & # 39; basis, the EBITDA of the company is £ 1 million with a & # 39; targeted profitability & # 39; of £ 1.25 million.
The initial consideration for the acquisition is £ 2.3 million in cash, financed from AFH's existing cash. Further deferred payment will be paid in cash within the next 26 months, provided that performance criteria are met.
AFH chief executive and Chartered Financial Planner Alan Hudson said: "This is a very important deal for AFH, both in terms of strengthening our presence in an important part of the country and the growth of our advisers.
"It is also another step towards achieving our £ 5 billion managed assets target."
• Editor's note: the story was updated at 9.00 am to add more details about the financial aspects of the deal.
FINANCIAL PLANNING TODAY JOBS
Advertise your vacancy with us and reach thousands of financial planners and umbrella planners. Place your job in minutes.