Imagine Financial Planning

Brothers Paul and Nigel Woods successfully transformed their Harrogate mortgage broking business into a fully-fledged financial planning firm in the wake of the 2008 financial crisis.

Having worked that hard to keep the business going, they were not about to let it go out of their hands.

Fiercely independent

“We wanted to remain fiercely independent – that was the number one priority for the clients we were working with,” recalls Nigel.

So when the adviser network they were part of started putting pressure on the brothers to give up their status as independent financial planners and be restricted to working with a panel of investment companies, the Woods brothers reassessed their options.

A new home

“We started to look for a new home and Fairstone’s offer was hugely attractive,” Nigel explains.

“Their culture, their ethos and the people we met were all like us and the size of Fairstone worked really well for us too.”

Paul agrees: “It was clear that Fairstone had the same values as us and what was important to our clients like cashflow forecasting was important to them as well.”

Fairstone’s downstream buy-out (DBO) model, which allows firm principals to share in the value of the growth in the business, was also attractive for Paul and Nigel.

Sharing in a bigger cake

“There’s a really big upside in that if you work hard and grow the business, you will share in that bigger cake and that was really appealing for us,” says Paul.

After agreeing to join Fairstone, the Woods’ business embarked on a three-year transition period – what Paul describes as “being Fairstoned” – during which time they got used to Fairstone’s systems, processes and people and clients got used to the idea of becoming part of the group.

“What was amazing during this time is that there was no pressure from Fairstone to move from the initial agreement to full acquisition,” Nigel recalls.

Very relaxed

“It was very relaxed and that made the process very attractive to us.”

Clients also welcomed the transition, as Paul explains.

Welcomed by clients

“They welcomed it, they were pleased for us, but there was no shock. Other firms we’ve spoken to who were bought by consolidators said it was a much more brutal process for them so I think the gradual way which Fairstone do things makes clients feel really comfortable.”

Clients have also seen further benefits since the firm became Fairstone Harrogate.

Additional security

Paul says: “They’re embracing the additional security of being part of a much bigger organisation.

“Previously clients would quite often say to us ‘there’s only the two of you and the three staff, what’s going to happen to me?’ and they don’t need to ask that any more.”

Support staff at the firm were “very relaxed and comfortable” about the transition and becoming part of Fairstone has delivered certainty and continuity when it comes to succession planning.

Nigel explains: “At some stage, Paul will retire from the business and I know that whoever replaces him, Fairstone will ensure that it will be the right person with the right focus on client service.”

Further growth in the future

Paul and Nigel are now looking forward to further growing the business as part of Fairstone.

Paul says: “The vast majority of the myriad functions and responsibilities of being a small business now sit at Fairstone head office, which creates capacity for us to think about clients more, to drive really positive outcomes and to look for more new clients.

“It’s very much a win-win for ourselves as a business and for our clients.”

Interested in learning more?

To find out more about Fairstone’s DBO model, contact Fairstone M&A Team Business Development Executive Euan Morris today.