May 11, 2020 @ 10:14 by Richard Dawson
Chartered financial planning firm Fairstone, has announced that two new firms have been brought into its downstream buy out (DBO) programme.
The DBO acquisition model operates by integrating an independent financial advisory (IFA) firm into Fairstone over a two-year period, before finally acquiring the business.
The deals will secure more than 720 clients, 16 advisers and support staff into the wider business as well as gross fee income of more than £1.5 million and funds under management of £200 million.
The firms joining the DBO programme are Brantwood Financial Planning and Advanced Financial Services based in Huddersfield and Durham respectively.
Brantwood specialises in tax planning, IHT and retirement planning whereas Advanced specialise in pensions and investments.
Entering the pre-acquisition phase, both will have the opportunity to align themselves with Fairstone’s culture and systems as well as take advantage of its regulatory, technical and operational support.
Fairstone CEO, Lee Hartley, said: “It is wonderful to bring another two quality businesses into our Downstream Buy Out programme. Both Brantwood and Advanced share Fairstone’s client-centric ethos and their focus on quality and first-class service is exactly what we are looking for in a business.
“The structure of our DBO programme ensures we partner with firms with an appetite to grow and develop and we look forward to working with both companies to help them build their businesses further.”
Paul Dickinson, principal at Brantwood, added: “Like us, Fairstone hold corporate Chartered status and we were attracted to their genuine independence and the fact that we would not be shoe-horned into centralised investment strategies or higher charging structures for clients.
“Fairstone’s on-going compliance and regulatory support will allow us to spend more time on assisting our clients with their financial planning needs.”
Martin Bage, principal at Advanced, added: “As a small firm of advisers, we were looking for the support and strength from a national firm for our clients, whilst still retaining the personal relationship we have with them.
“This gives our clients and ourselves the security we need in this ever-challenging world.”