Harwood has purchased Southampton wealth manager and planner AE Financial Services for £4.6 million, adding client assets under influence of £130 million.
The purchase, described by the company as its ‘most significant acquisition to date’, brings Harwood’s total assets to almost £4 billion.
One of AE Financial’s two owners, director David Hayward, will stay with the business, which last year generated revenue of £1.3 million and profits of £500,000. The payment will be structured in two tranches with the second contingent on targets, plus another £1.5 million for ‘cash balances’.
Harwood chair Peter Mann (pictured) said: ‘AE Financial is a strong addition to the group and we look forward to welcoming both the team and clients to Harwood Wealth.
‘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.’
The business has purchased three companies in the last six months, and a total of seven last year. It acquired Finance For Life for a total consideration of £900,000 in November, of which £500,000 was paid upon completion.
Later that month, the firm said it also agreed to buy Peter John Vickery's financial advice business. The transaction completed on 12 December following an initial payment of £100,000.
The company’s third acquisition, the purchase of Anthony Harding & Partners, was completed on 10 January for a total consideration of £1.1 million, of which £600,000 was paid upfront.
Hayward added: ‘We are very pleased to be joining such a well-respected and successful group.
‘I am confident that Harwood will be a perfect fit for our team and allow us to develop the business and continue to provide high quality and dedicated advisory services to our clients. We very much look forward to joining the team.’