AFH Financial gobbles up David Rushton

Financial planning-led wealth management firm AFH Financial has agreed the acquisition of the assets of David Rushton Associates, a Lancashire-based IFA.

The AIM-traded firm said following the acquisition David Rushton, the vendor, will join AFH.

Under the terms, the maximum consideration payable by AFH is £298,125, representing approximately 1.8% of the funds under management.

An initial cash consideration of £157,500 had been paid upon completion, the board confirmed, satisfied from the company's existing cash resources.

Further deferred consideration of up to £140,625 will be payable in cash over the next 26 months in two tranches, dependent upon performance criteria of the assets acquired from David Rushton.

The acquisition is AFH's first corporate transaction of the current financial year, and part of its stated strategy of making carefully selected acquisitions which will be value enhancing.

Rushton will add approximately £16.5m to AFH's funds under management.

“This acquisition will strengthen our position in the North West and I look forward to working with David to continue the development of AFH in the region,” said chief executive Alan Hudson.

“The acquisition of the assets of David Rushton follows the strategy restated in our recent trading update of making selective acquisitions to develop our expansion nationally and leverage our central investment and support functions.

“The company continues to seek high quality businesses of all sizes that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders.”