Fairstone Announces Best Ever Six Months of Dealmaking

Fairstone Group today announces the firm’s best ever six-month period of dealmaking. The first half of 2023 has seen six firms join the group as part of its market leading Downstream Buyout (DBO) model.

Against the backdrop of challenging markets and higher inflation, appetite for the Fairstone DBO proposition remains strong, in contrast to a well-recognised downturn in M&A activity across the sector.

Fairstone CEO, Lee Hartley said:

“Our model is designed to appeal to ambitious IFA owners who are confident in their business and committed to future growth, so it comes as no surprise to me that our offering has not been affected by market conditions.

“We partner with firms with no interest in selling outright today, instead we work with business leaders looking to secure the investment, resources and access to clients they need to achieve their growth aspirations. We have very little interest in buying any business that simply wants to sell today and where those shareholders want to exit immediately – our aim is to invest in growth and support business owners who want to optimise their business value.

“The DBO is unique and as a result we are speaking to a completely different audience. The combination of these factors is why we are seeing different outcomes to others in the acquisitive space.”

Fairstone’s alternative approach to dealmaking has ensured year-on-year outperformance with latest figures showing fully acquired firms exceeding their sale values, with an average of 116% of expected consideration being paid.

The success of the last six months builds on the momentum created in the latter part of 2022 which also saw Fairstone onboard Swindon-based Executive Wealth, Prospero Finance and Epsom-based Grayside Financial Services. Together the firms brought in £450m of assets, annual mortgage lending of £80m, and 13 advisers who are servicing 1800 wealth clients.

This continued growth will be served by a relocation to a new flagship head office – the former Nike headquarters in Sunderland’s Doxford International Business Park, later in September.

Hartley continued: “I am delighted with the results so far this year. The pipeline for the remainder of 2023 is strong and I am confident that this level of deal activity will continue onwards. Over the last 12 months we have invested heavily in our M&A function and it is fantastic to see the direct impact of bolstering the team in our dealmaking results.”