Under the deal, AFH will pay a maximum of £2.856 million based on the profitability of DFM over the next year. The company has already paid an initial £1.071 million in cash and AFH equity. It will pay a further £945,000 in cash and a remaining £735,000 through a share placement. DFM’s advisors have now joined AFH.

The latest acquisition, which follows hot on the heels of last month’s purchases of Quest Financial Management and the assets of Phoenix Independent Financial Services, is AFH’s 13th since it listed on London’s Alternative Investment Market in June 2014. 

“I am pleased to welcome current managing director of DFM John Wright and his team to AFH and look forward to developing the existing relationship with DCA to drive the expansion of AFH in the South West region,” said the chief executive of AFH, Alan Hudson.

“The structure of this deal, which enables the vendors to participate in any future uplift in revenue and profitability through the issue of the consideration shares and will be held for a minimum period of three years, reflects their belief that the sector has significant potential and that our business model is value enhancing.”