News

ifa sales
25
Sep

Fairstone partner with Complete Financial Planning under its DBO programme

Fairstone has announced that it has signed up new firm Complete Financial Planning to its unique Downstream Buy Out (DBO) programme.

The new DBO deal is the eighth announced in 2020 and brings the total of funds under management added through Fairstone’s unique DBO programme so far this year, to more than 1.2bn.

Complete Financial Planning has joined Fairstone through its unique DBO acquisition programme, increasing the firm’s strategic footprint in the West Midlands and marking another significant step forward in Fairstone’s growth plan for 2020.

The deal brings more than 1,600 clients, 11 advisers and 10 support staff to the wider business as well as gross fee income of £1.5 million and funds under management of more than £140m.

Fairstone’s unique DBO acquisition model is built on acquiring sustainable growth and operates by integrating an IFA firm, typically over a two-year period, before finally acquiring the business.

This latest deal with Complete Financial Planning marks the start of this phased pre-acquisition process, enabling both firms to fully align in terms of culture and systems as well as empowering the business owners to optimise their capital realisation and control their sale valuation. Complete will also be able to take advantage of the regulatory, technical and operational support that Fairstone provides.

Complete Financial Planning is based in Hereford, and the firm specialises in pension planning and investment management.

Fairstone CEO Lee Hartley said: “We are delighted to welcome Complete Financial Planning into our Downstream Buy Out programme. The team at Complete Financial Planning bring a first-class and efficient approach to their work, centred around building quality long-term client relationships, making them an excellent fit for Fairstone.

“We are very pleased to have a company of this quality join Fairstone and we look forward to working with them and helping them to grow their business further within our unique DBO programme.”

Fairstone is a full-service wealth management house delivering integration-led growth and its unique DBO approach ensures that companies are fully-integrated with Fairstone prior to final acquisition, ensuring a seamless transition for clients and staff.

Significantly, many companies that have successfully reached full acquisition have enjoyed increased organic growth and a higher valuation than expected on purchase. Figures show that the firms Fairstone has acquired have received on average a further 12% on top of their premium sale value with some achieving as much as 39% more.

Company principals at Complete Financial Planning, Mark and David Rawlings, said that the shared cultural values as well as putting clients first and foremost, were deciding factors in partnering with Fairstone.

Mark Rawlings added: “As one of the UK’s largest Chartered financial planning firms, Fairstone can also provide the financial strength and stability that a smaller firm like ours needs to grow and prosper within a sector that continues to face significant challenges.

“The Fairstone proposition appealed to us as it is an opportunity to work closely with Fairstone to build our business together. It also provides a valuable opportunity for advisers and clients to benefit from working with a large and expanding team of Chartered financial planners.

“Trust is extremely important when working with businesses and people in financial services. In the time we have known the Fairstone family, we have found them to be not only people you could do business with, but people you would want to do business with.”

Fairstone’s DBO programme continues to be a core driver of growth for the business, reversing the traditional buy and build approach, with integration playing the leading role in a firm joining the programme.

Fairstone CEO Lee Hartley added: ““We are always looking for strong, high quality businesses with ambitious growth plans to join Fairstone. The strength of our DBO programme is demonstrated in the fact that all the firms we have gone on to acquire have received at least 100% of their premium sale value and many achieving much more, consolidating our position as a secure, stable and proven acquirer within the sector.”

Fairsone’s DBO is a well-defined propostion – to understand more contact gwill.evans@gunnerandco.com or another memeber of the Gunner & Co. team