By Justin Cash 4th November 2019
Consolidator AFH has made its latest acquisition with the buyout of Warwickshire-based advice firm Groom Associates.
FCA Register and Companies House records indicate the firm has two advisers – William Groom and Annabelle Duncan.
AFH says the pair will retire once the acquisition completes, meaning that all current Groom Associates clients will now be serviced by existing AFH advisers.
Groom Associates will receive an upfront £321,000 payment. Over the next 26 months, the total value of the deal could reach £615,000 if “performance criteria of the assets acquired” are achieved.
AFH chief executive Alan Hudson says: “Our eighth acquisition of the financial year is the client portfolio of an established IFA business in Studley. I wish Bill and Annabelle well in their retirement. The business provides a complimentary fit to AFH’s core business and I am confident that Groom’s existing clients will benefit from the advantages of the AFH proposition”.
AFH operates its own funds, discretionary management service, and platform – which is free to clients who opt to invest in AFH’s investment proposition.
Last month, AFH said that its strategic focus was pivoting away from acquisition opportunities to organic growth, partly due to an “uncertain political and economic climate”, as it intends to “de-risk its model through a period of consolidation, cementing the integration of acquisitions”.
Groom Associates was previously called Arden Associates (Studley), changing its name in 2018 after 16 years in business.