One of the newest consolidators on the block has bought Southampton-based advice firm AE Financial Services from its parent insurance company in a deal worth up to £4.6 million.
AIM-listed Harwood Wealth Management described the deal as its 'most significant acquisition to date' in an update to the market. It will add £130 million of assets under advice to take Harwood's total close to £4 billion.
Following the deal AE Financial Services will become the Southampton base for Harwood. AE Financial will not change its name, and director David Hayward will remain with the company.
The acquisition has initially cost Harwood £2.4 million. A further £2.2 million could be due over the next two years depending on whether AE Financial Services hits performance targets.
Harwood is one the of the newest but fastest growing consolidators in the advice market. It was established in March 2016 with the merger of Compass Wealth Management and Wellian Investments. Since buying Wolverhampton-based Network Direct in August 2016 the company has been on the acquisition trail. In the last year alone it has bought seven advice firms.
Peter Mann (pictured), the former Skandia chief executive who is now chairman of Harwood Wealth Management, promised there would be no let up in the number of acquisitions the company plans to make.
'As well as further augmenting our presence in a key area of the UK, this acquisition continues to build upon our successful model of acquiring IFA firms who share our values and culture. We look forward to continuing to deliver on our strategy, driving growth organically and through further M&A in the period ahead.'