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Bromsgrove adviser swoops on two IFAs in £190k deal

by Daniel Grote on Dec 17, 2012 at 07:37

Bromsgrove adviser swoops on two IFAs in £190k deal

Bromsgrove-based adviser AFH Financial Group has bought two IFAs in a deal worth a combined £191,000.

AFH has bought Buckinghamshire-based Racol Financial Services for £160,000 and Redditch-based Seager Financial for £31,000.

Racol founder Ray Collingridge will retire following the transaction but his daughter will transfer to AFH and remain an IFA. Seager Financial founder Ian Seager will meanwhile step down as an IFA but join AFH as a member of its business development team.

Seager was formerly a member of the Lighthouse network while Racol was part of the On-Line Partnership.

The deals mean AFH has now acquired 12 firms since its initial public offering onto the Plus stock exchange.

AFH chief executive Alan Hudson (pictured) said the deals showed the opportunities the retail distribution review was providing for acquisitions. ‘Today’s transactions continue our strategy of growing the business both organically and through select and opportune acquisitions,’ he added.

13 comments so far. Why not have your say?

Joe via mobile

Dec 17, 2012 at 08:20

Both IFAs didn't want to take the exams then? Hardly front page news!

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Ian Lees

Dec 17, 2012 at 09:39

All change - No Change - two down 19,998 to go - leaving consumers without advice - forced into the arms of insolvent banks, remaining salesforces - RDR and all that ? Lets all get a job at Barclays - join Hector and his new house ? or . . . . . .

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IFA and Proud.

Dec 17, 2012 at 10:01

.........or you could join AFH !!

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Dante

Dec 17, 2012 at 11:25

@Joe: agree

"swoop" implies a raptor hunting a moving evasive prey;

With last accounts of 2 acquired showing book value of £-314 and £-897 AFH are certainly "opportune"...

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Lady IFA

Dec 17, 2012 at 11:45

Where does the money they are spending come from?

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Philip Melville

Dec 17, 2012 at 16:10

I think you will find that the word " buying " is an oxymoron as it is with every other consolidator.

They simply recycle the firms existing income and give it to the person who thnks they have " sold " their business.

Wonderful con trick which seems to have gone completely over the heads of everyone disposing of their business or client bank and of course the media who gleefully report all of these so called purchases .

Still it financial advisers who are " selling " their business - for their own money, Cant expect them to understand can we ?

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Bob Donaldson

Dec 17, 2012 at 17:35

£31K for a business wasn't much Hardly a business at all I would have thought. Didn't take much swooping to catch it.

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Ian Lees

Dec 17, 2012 at 22:00

I think you will find any money paid comes from insolvent banks - who recklessly are the money lenders to people for mortgages - and the banks who approached the taxayer for funding ? Then policyholders - sold on or recycled -to produce more commisssions -to fund expensive lifestyle - without conducting any work. Recycle recycle the same money - see transfer business ( pensions endowments ISA's whole of life policies etc.,) - same money recycled - with charges taken out - in my opinion. Now with wrap providers on the llok out e.g standard life - looking to replace funds lost by purchasing business - in the hope they can make the business work. Paying over the odds for poor business models - happens in every industry.

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Sid Cynical

Dec 18, 2012 at 10:40

Lady IFA - It pays to be a Discretionary Fund Manager with your own fund!

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Ian Lees

Dec 18, 2012 at 14:50

LAdy , Why would you wish to be a fund manager ? Why not get the assitance of a good quality - sound, professional - discretionary fund manager - who will do the job infinately better than you or I. This leaves you with more time on your hands - to do what you should be doing - getting in front of clients and potential clients - and bring them on board with your service - the application and implementation of financial planniing advice. Like solicitors and accountnats discretionary fund managers are professionals - who offer a professional service - rather than a slimmed down service from people who are not rngaged full time in fund management - and do not have the clout or competence or market aware ness - required. Many think they do - and they are a worry !?!

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Lady IFA

Dec 18, 2012 at 15:08

Eh??

Ian, I am not a fund manager, nor do I ever intend or wish to be.

You've miss read the posts old chap!!

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Ian Lees

Dec 18, 2012 at 15:54

" It pays to be a discretionary fund manager with your own fund", is what the lady wrote . . . . what part of this did I " miss" read . . " Mrs" ?

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IFA and Proud.

Dec 18, 2012 at 16:50

Er Ian, the bit you missed is that she didn't write that comment Sid did !!

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