The Lincolnshire-based firm specialises in financial planning, asset management, pensions and estate planning and last year turned over £750,000.
Leigh Johnson, IFA at Zimb Johnson, said the deal was sealed due to Fairstone’s back office, compliance and regulatory support functions, along with its commitment to the quality of advisers.
“Our team will be able to benefit from the Fairstone Academy and the status that comes with being part of one of the biggest Chartered firms in the UK,” he added.
Advisers joining Fairstone are able to leverage its core technology platform and services such as compliance, para-planning and lead generation.
Lee Hartley, chief executive of Fairstone, said: “Fairstone has grown significantly in the last few years and it is made possible through partnerships with businesses like Zimb Johnson who are dedicated to their clients and can see the benefits of letting Fairstone support their ambitions.”
He previously told FTAdviser that there has never been a better point for IFAs to sell their businesses, although many firms are nowhere near the right financial and organisational shape required to seal a deal.
Fairstone bases its acquisition model on purposefully not looking at firms with partners or principals looking to sell-up and retire, preferring those that want to grow their business before realising the best price.
This ‘Downstream Buy Out’ programme sees Fairstone buying a minority stake, agreeing a purchase formula and then fostering growth through loans - later deducted from the deal price.
Earlier this month, Fairstone acquired Devon-based South West Financial Planning, adding £50m of funds under management, bringing the group total to £2.1bn.