Acquisition
16 December 2021
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Fairstone
This acquisition by the full-service wealth management house, further highlights the strength of Fairstone’s unique proprietary Downstream Buy Out (DBO) acquisition model which integrates ambitious IFA firms into the group, typically over a two-year period, prior to final acquisition. The focus of Fairstone’s approach is to attract businesses that do not want to sell today, instead targeting robust and well-managed firms that want to grow and develop, therefore crystallising a higher overall valuation in the future.
Significantly, the vast majority of companies that have successfully reached ultimate acquisition stage demonstrate continued organic growth and a higher valuation than expected at the outset of the journey, with firms commonly exceeding their original aspirational sale value.
Based in Bracknell, Hammett and Petch Financial Planning is a whole-of-market advice firm specialising in advice and management of investment and retirement portfolios.
The acquisition brings an additional 300 clients into the group together with Hammett and Petch’s two advisers and two support staff. The acquisition also secures gross fee income of £800,000 for Fairstone together with funds under management of more than £60 million.
Commenting on the deal, Lee Hartley, CEO of Fairstone, said: “We are delighted to complete the final acquisition of Hammett and Petch, having worked closely with them throughout the integration phase.
“The team are client-focused and excel in providing first-class service to their clients, making them an excellent fit for Fairstone.
“Within Fairstone, we work hard to ensure our proposition gives firms the framework they need to significantly grow their businesses, without compromising on client service or independence. Finalising this deal with Hammett and Petch marks a valued addition to our group and kick-starts our scheduled growth plan for 2021.”
Company principals at Hammett and Petch Financial Planning, Trevor Petch and Paul Hammett, explained that a major factor in the firm joining Fairstone was to enable the team to focus their energy on clients, while Fairstone handled the operational, regulatory and administrative aspects.
Trevor Petch added: We are faced with the challenges of ever-changing and increasing regulation and the need to continually adapt to new processes and systems. Deepening our existing relationship with Fairstone means we can take full advantage of the support offered, leaving us with more time to spend with our clients.
“Our clients are at the heart of our business and Fairstone is aligned with our ethics, ethos and client focus.”
Lee Hartley added: “I can say with confidence that Fairstone remains in a superb position to deliver continued growth throughout this year and far beyond. Our strategy is the exact opposite of the traditional ‘consolidator’ model and our underlying numbers – from client satisfaction and client retention through to earn-out performance – fully back this up.”
Headquartered in Newcastle, Fairstone is the number one ranked wealth management firm on Trustpilot* with over 69,000 clients and operates nationally across 42 locations.
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