The Bay purchase will add £73m to AFH's funds under management. AFH has so far bought five adviser firms this year.

The deal was completed yesterday (20 February 2017) and means that Bay’s senior staff Seamus Coleman, Simon Durant and Nigel Hull have joined the AFH Group.

Under the terms of the acquisition, the maximum payable by AFH will be £1.4 million based on the performance of Bay over the next 24 months. The money will be in cash. So far, the initial consideration has been £595,000 funded from the company's existing cash resources.

A further sum of up to £805,000 will be payable over the next 24 months in two tranches dependent on the performance criteria of Bay over the period.

Alan Hudson, chief executive of AFH, said: "This acquisition continues to strengthen our presence in the South West and I look forward to working with Seamus, Simon and Nigel to further develop AFH.

“The acquisition of Bay is our fifth acquisition this year and will be integrated in line with our established model to enhance shareholder value during the current financial year. We continue to have a strong pipeline of future acquisition opportunities."

Bay Financial Management trades as Bay Associates Ltd from offices in High Street, Honiton. It describes itself as offering “independent, individual, professional advice “ to families and businesses.

It specialises in private and corporate pensions, savings and investments, life assurance and critical illness, income protection, mortgages, long term care, equity release, school fees planning, trust and inheritance tax planning.