Mergers and acquisitions  

Fairstone secures 700 clients in latest acquisition

Fairstone secures 700 clients in latest acquisition
Paul Pelopida, principal at UskVale Financial Planning, and Scott Hopkinson, chief commercial officer at Fairstone

Fairstone has sealed the acquisition of a South Wales-based financial planning firm in a deal which has secured the national wealth manager a further 700 active clients. 

UskVale Financial Planning first joined Fairstone in 2017 via its downstream buy-out model, which sees the consolidator take a stake in an advice firm before integrating it typically over a two-year period and then purchasing it.

The deal brings with it three advisers and secures gross fee income of £1.2m and funds under management of £120m for Fairstone. 

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It comes one week after the national advice firm confirmed it had agreed its ninth new deal under the downstream buy-out model in 2020, adding more than £1.3bn to its funds under management so far this year.

Lee Hartley, chief executive of Fairstone, said finalising the deal with UskVale marked a "very valued addition" to the business, with Fairstone also expected to announce additional deals before the turn of the year.

Mr Hartley said: "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, and UskVale has shared our appetite to grow and develop."

The advice boss said Fairstone's acquisition model was "yielding impressive results" and attracting a "series of extremely high-quality firms" into its business.

Last month the company told FTAdviser it had spent an additional £5.4m on acquired businesses which exceeded their initial target value over the past nine years. 

In earn-out data for the 45 companies which has been integrated into the Fairstone model since 2011, one in six companies joining the company via its downstream buyout model received more than 135 per cent of its original sale value.

On average, sellers received 111 per cent of the initially agreed price, with almost a quarter of advice businesses receiving more than 20 per cent above the original transaction value. 

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