Foster Denovo is maintaining a deliberate approach to acquisitions despite continued consolidation across the UK financial advice sector. While many firms continue to pursue aggressive acquisition strategies, the national advice and wealth management business says it remains focused on finding the right opportunities rather than increasing deal volume.

The firm operates from 13 offices across the UK and has completed acquisitions in regions including Scotland and the Midlands. However, despite maintaining a healthy pipeline of potential opportunities, Foster Denovo says organic growth remains a key priority.

The approach highlights how some acquirers are prioritising integration and long-term cultural alignment over rapid expansion.

Foster Denovo takes a selective acquisition approach

Foster Denovo group managing director Helen Lovett said the business remains active in the acquisition market but is not under pressure to complete deals.  She said: “We’re not in a situation where we need to buy something. That’s just not where we’re at. It’s a slower pace than some. It’s very deliberate.”

Lovett explained that Foster Denovo fully integrates acquired firms into its operating model and culture. Consequently, the business focuses on a small number of carefully selected acquisitions each year rather than pursuing a high-volume consolidation strategy.  She said: “We’re not a consolidator, we’re a facilitator.”

The firm’s approach reflects a wider trend among acquisitive firms that prioritise integration quality and cultural alignment as key drivers of long-term value creation.

Balancing acquisitions with organic growth

Although acquisitions remain part of the firm’s growth strategy, Foster Denovo places significant emphasis on organic growth.

According to Lovett, the business sees substantial opportunities to expand through its existing client base, adviser network, and service offering. Therefore, acquisition activity complements growth rather than driving it.

The firm is also majority owned by its partners and employees, with around 80% of ownership remaining internally held. However, Lovett acknowledged that external ownership could become more likely as the business continues to expand.

Employee benefits remain a core part of the strategy

Alongside its wealth management business, Foster Denovo operates employee benefits consultancy Secondsight.  The employee benefits division strengthened further following the acquisition of part of Punter Southall in 2023. Today, the division contributes revenue levels that Lovett describes as broadly comparable to the firm’s wealth management operations.

She said the business has always viewed employee benefits as strategically important, regardless of changing market perceptions.  The combination of financial planning and employee benefits allows the group to diversify its revenue streams while maintaining close relationships with employers and employees.

What this means for business owners

For owners of financial advice firms considering succession or growth options, Foster Denovo’s strategy highlights the importance of quality over quantity when evaluating acquisitions.

The firm’s focus on integration, cultural fit, and long-term development demonstrates that successful transactions are not solely measured by deal volume. Instead, alignment of values, operating models, and client service standards increasingly influence acquisition decisions.

For sellers, this reinforces the value of preparing a business that can integrate successfully into a larger organisation while preserving its culture and client relationships.

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