Following the takeover, JW Wealthcare’s John Walpole will join AFH, a wealth management and Financial Planning firm, as a financial adviser.
Under the terms of the deal, the combined maximum purchase price will be £1.1m, payable in cash over the next 26 months in four tranches, dependent upon performance criteria being met. The acquisition is expected to contribute an aggregate of approximately £300,000 of recurring revenue to AFH.
Alan Hudson, chief executive of AFH, said: "I am pleased to welcome John to AFH and look forward to working with him to continue our growth within the South East."
"This acquisition, our second since 1st November, highlights the continued high level of activity that we are seeing in the market and continues our strategy of enhancing our organic growth with selective acquisitions."
Rapidly growing AFH acquired Colchester-based Financial Planner Britton Financial for £2m in November, adding £57m of funds under management.
Britton Financial has clients in East Anglia, London and the Home Counties and offers a “comprehensive Financial Planning service” as well as wealth management and general IFA advice.
AFH, founded by Chartered Financial Planner Alan Hudson, has acquired over a dozen firms in the past year and now serves almost 9,500 clients, with £2.7bn under management. Further acquisitions are expected.
AFH was founded by Chartered Financial Planner Alan Hudson in 1990. It is based in Bromsgrove, Worcestershire, and its turnover in the financial year to October was £33m, up from £24m the year before. In the same period its funds under management grew from £2bn to £2.7bn. Since 2014 it has been listed on AIM.