AFH Financial has sealed its seventh acquisition of its financial year with the purchase of a law firm's advisory business.
The wealth consolidator will pay a maximum of £0.53 million for the client portfolios of Nottingham-based Meritor, the advisory business of local law firm Freeths LLP.
In a statement, AFH said Freeths had decided to sell the business and focus on its core legal practice due to 'ever-increasing' regulatory demands.
As part of the deal, Meritor adviser Karen Pincher will join AFH’s team of employed advisers. She will continue to work with Freeths and look after her 275 clients and their £59.6 million of investments.
The deal is expected to add approximately £330,000 of annual recurring revenue to AFH's balance sheet.
AFH will pay an initial £330,000 from its existing cash resources for Meritor. The outstanding balance will be paid subject to certain performance targets met over the next 14 months.
The acquisition comes hot the heels of AFH's double acquisition in the space of 24 hours last month.
Commenting on the Meritor deal, AFH chief executive Alan Hudson (pictured) told the market: 'This latest acquisition will continue the expansion of our national distribution in our core mass affluent and high net worth client base.
'The acquisition of the assets of Meritor provides a pathway to work with Freeths in the future to provide their clients with access to the AFH advice and asset management model and gain advantage from the scale that AFH provides.'
He added: 'We are aware of a number of similar businesses linked to legal and audit practices that are deemed non-core to those organisations. We believe that the mutual benefits of this transaction will demonstrate the commercial advantages to similar organisations and their clients in the future.'
Pincher added: 'I first decided to become a financial adviser because I saw how big a difference a really sound approach could make to clients’ outcomes. That’s why I’m so pleased to have the opportunity to join AFH and to give my clients the benefits of its expertise.'