Fairstone strikes second deal of 2018

Fairstone strikes second deal of 2018

Financial advice firm consolidator Fairstone has bought Zimb Johnson Bespoke Financial Planning for an undisclosed sum.

The deal is Fairstone's second of the year and brings nearly £200m of funds under management into the company.

It was carried out through Fairstone's downstream buy-out model, which sees the company take a stake in an advice firm before integrating it and then purchasing it.

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Lee Hartley, chief executive of Fairstone Group, said: "Bringing such a well-respected business into Fairstone marks an outstanding start to the year and underlines our intent to partner with high-quality firms who share our culture and are determined to grow, with our support.

"Having made a number of successful acquisitions in 2017 and greatly expanded our DBO programme we look forward to another successful year in 2018.

The DBO programme means firms Fairstone is seeking to acquire are already using its commercial, legal, compliance and customer acquisition support long before being brought into the company.

"Our IFA businesses can therefore enjoy a premium on purchase due to their enhanced growth and revenue streams," Mr Hartley said.

Zimb Johnson was founded in 1999 and specialises in providing wealth management services to individuals and owner-managers of private companies, as well as advice to trustees, family offices and charities.

Leigh Johnson, company principal at Zimb Johnson, said: "It became clear that increased regulation, compliance and reporting could restrict the time we might otherwise spend with our clients. Through working with Fairstone, we were offered significant support in these areas, combined with state-of-the-art technology and back-office systems.

"This merger is extremely exciting for us and Fairstone’s financial resources will allow us to develop the business and continue to provide high-quality and dedicated advisory services to our clients."