Fairstone partner with Financial Concepts

Fairstone, one of the UK’s largest Chartered Financial Planning firms, has announced that it has signed up new firm Financial Concepts to its unique Downstream Buy Out (DBO) programme.

The deal brings more than 5,000 clients, six advisers and five support staff to the wider business as well as gross fee income of £1 million and Funds Under Management of £104m.

This latest DBO deal is the fifth announced so far this year and marks another significant step forward in Fairstone’s growth plan for 2020.

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

This latest deal with Financial Concepts 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. Financial Concepts will also be able to take advantage of the regulatory, technical and operational support that Fairstone provides.

Financial Concepts specialise in pensions and investments and have two offices, in Carlisle and Whitehaven.

Fairstone CEO Lee Hartley said: “We are pleased to welcome Financial Concepts into our Downstream Buy Out programme. The business has a strong focus on providing quality, first-class service and has a client-centric ethos, making them an excellent fit for Fairstone.

“The structure of our DBO programme ensures we partner with firms with an appetite to grow and develop and Financial Concepts share our values and aspirations for the future. We look forward to working with them and helping them to grow their business further.”

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 which have successfully reached full acquisition have enjoyed increased organic growth and a higher valuation than expected on purchase. Figures released at Fairstone’s Annual Conference in Newcastle earlier this year showed 15% outperformance across its entire portfolio of acquired businesses, with these firms delivering more revenue, profits and growth than either their own forecasts, or those upon which the buy-out agreements are based.

Financial Concepts principal Nigel Shackleton said: “We wanted the opportunity to join a national Chartered IFA and joining forces with one of the largest Chartered financial planning firms in the UK makes very good sense.

“Fairstone share the same high business standards and are like-minded in approach and priorities – clients must come first. We look forward to developing our businesses together.”

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 a key 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 and whilst we recognise that we are all moving into a different climate with challenges ahead, we are in a strong position and we will continue to onboard new DBO firms at our forecasted volume.”