The independent financial advisor (IFA) business has announced plans for the acquisition of Berkely Wodehouse Associates, a large national IFA firm. The consideration will be satisfied by £2.1m of Lighthouse shares, priced at 60p. In order to fund this acquisition, it is also planning to raise £2.2m in a placing underwritten by KBC Peel Hunt. In the year to December, Lighthouse made a loss of £2.8m on sales of £5.2m (£1.6m), reflecting the fast growth undertaken by the company. Recent changes in FSA legislation should shift IFA charging from commissions to fees, and this in turn is predicted to make independent IFAs the preserve of rich clients. Lighthouse thinks that it is well positioned to capitalise on this, as it has focused on serving rich clients rather than the 'mass market'. Investors in Lighthouse should be mindful of what happened to fully-listed Inter-Alliance, which grew very quickly and allowed costs to rise out of control.