Broadleaf Financial Services has been bought by the AFH Financial Group, the two companies have confirmed.

Financial planning-led wealth management firm AFH has paid £3.2m for Broadleaf, subject to performance criteria during the two-year earn-out period. The initial consideration for the acquisition was £1.7m, paid from existing cash reserves, with the balance payable in cash over the next 26 months.

This is the third IFA business purchased by AFH this month – the group announced it had completed the acquisitions of Mulberry Independent Financial Advisers and AE Garment Independent Financial Services just last week.

Under the terms of this acquisition, four advisers from Wirral-based Broadleaf will join AFH, together with their support staff, bringing their clients and £140m of funds under management. But John Shaw, principal adviser and one of the founders of Broadleaf, together with his fellow directors, will retire from the business.

AFH chief executive Alan Hudson said the latest move brought the amount the group had spent since its convertible loan stock placing in July to £10.4m, and had extended AFH’s footprint in the north west of England.

He added: “In this period of economic and political uncertainty we remain focused on driving the organic growth of our business by providing professional and cost-effective services to our clients and, in turn, enhancing profitability. The company remains well capitalised to take advantage of the previously identified acquisition opportunities and to continue its record of delivering profitable growth and enhanced shareholder value.”

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