Fairstone makes latest acquisition under DBO model

Acquisitive wealth management firm Fairstone Financial Management has made the latest acquisition under its downstream buy out (DBO) model. The company has acquired MT Financial Management, a Spalding-based business serving clients in Cambridgeshire and Lincolnshire.

Fairstone’s DBO model sees the buyer take a minority stake in a company, before gradually integrating it ahead of the full acquisition. Fairstone began integrating MT Financial Management under the DBO model in March 2020.

Since then, MT Financial Management has seen an 11 per cent increase in new business growth, as well as a ten per cent increase in assets under management (AUM). Following its final acquisition, the company brings Fairstone over 600 clients and £200 million in funds under management (FUM), as well as a team of four advisers and nine staff.

Fairstone’s DBO model, which is described as offering target company a range of upsides both pre and post-acquisition, has established the company as one of the major consolidators in the UK’s ongoing wave of wealth management M&A. The acquisition of MT Financial Management is the firm’s second of the year so far.

Lee Hartley, Chief Executive of Fairstone, said: "MT Financial has a well-established reputation for providing excellent client-centric service and they are passionately whole-of-market making them perfectly aligned with Fairstone. We couldn't be happier to complete the purchase; when you bring like-minded businesses together then the fit is obvious from the start.”

"Trevor and the team have been wonderful partners to work with during their integration, they have embraced our proposition and utilised the broad spectrum of support services we provide to grow their business."

"They will continue to receive ongoing support post acquisition to grow further and unlock additional avenues of greater long-term value, including a secondary capital event, through our enhanced buy-out offering.”

Regarding the company’s ongoing M&A plans, Hartley added: "Our acquisition strategy remains firmly focused on bringing in quality, ambitious firms such as MT Financial, who want to join us and utilise our framework to deliver ongoing organic growth."

MT Financial Management Principal Trevor Wilshire commented: "Fairstone is equally committed as we are to providing first-class independent financial advice to our clients. As we become fully part of the Fairstone family we look forward to the further opportunities this provides us to grow and build on our success to date and better serve our clients in the years to come."


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