British wealth firm AFH Financial Group is seeking to further boost its national presence next year by acquiring firms in London and the South East.
The firm is also considering additional financing options to take advantage of increased size and rate of independent financial advisers becoming available for sale.
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AFH said it may use fixed interest instruments, alongside its equity base, to set up a modest level of borrowing into its balance sheet in the current financial year to enhance returns to shareholders.
AFH has completed seven acquisitions this year and its funds under management recently exceed £900m.
Since AFH listing on AIM in June 2014, the number and size of potential acquisition targets has grown, the wealth manager’s board said.
AFH currently has cash balances in excess of £5m and its acquisition model is based on a capped earn out over a two-year period, with the initial consideration set at about 50% of the anticipated total value.
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By GlobalDataAlan Hudson, chief executive of AFH, said: "The company’s results for 2014 will represent another important milestone in AFH’s journey to become one of the UK’s leading IFAs."
