From day one, Fairstone provides a family feel– big enough to provide the support of a national business but small enough to care.

A hybrid approach to the DBO programme

Three wealth advisers with a well-established business made the decision to leave the firm they were with, following the announcement that the business was exploring merger and acquisition options.

What should have been a smooth transition became quite challenging, with concerns that client service might be prejudiced, through no fault of the advisers.

Although initially structured as a standard Downstream Buy Out (DBO), it was clear that an accelerated process using a newly incorporated company, prioritising adviser authorisation and start-up support was the right solution for Ian Staley, his son Jordan and long-term colleague Darren Jones.

This hybrid model enabled the advisers to take control of their immediate future in a supportive and dynamic environment. Staley and Jones Limited was fully operational within two months whilst at the same time being supported through a framework that would enable them to grow and plan for a full acquisition by Fairstone at a point in the future.

Ian Staley and his two business associates

Fairstone curated a hybrid DBO model which was tailored to suit Staley and Jones. Here, Ian discusses why this approach was right for him, the integration process and life post-acquisition.

“I was with an Independent Financial Advisory company for 20 years and had built up a very high net worth client bank. My son, Jordan, was involved in the business as well, but the parent company was exploring merger and acquisition options. That’s when I started to explore the market and Fairstone was a perfect fit.”

Why Ian chose Fairstone…

“First and foremost I wanted to find a home for the client bank I had built up. I wanted to make sure that I could carry on looking after these clients and be supported. Equally as important, was my son Jordan. He is in his 30s and when I decide to exit or retire, I wanted him incumbent in a business where he could suceed and flourish. We felt Fairstone was the place he could do that.”

“I looked at various companies and Fairstone was the only one that ticked the box for all three of us.We wanted independence, we wanted clients to come over on the same fees, but we also wanted an integration period whilst we planned for succession.”

“Darren and I are both now 58  and heading towards the end of our careers. Jordan’s just starting his, so we wanted a model where there is a buyout, but there is also integration, where we can carry on servicing our established clients but are safe in the knowledge that Jordan can have a successful career with Fairstone once we exit the business.”

“Through the hybrid DBO model we were able to move all our clients over in a month, and we were running at full revenue, with newly integrated systems within two months.”

“We wanted to join a progressive, national company which could help us to start our own business whilst ensuring a smooth transition for our clients, provide access to cashflow and regulatory support. Fairstone provided all this and more. We have never looked back and with its support we are now looking to build a scalable business over time, with a clear succession plan and more importantly, due to the resources we now have access to, we can spend more time with clients to give them the best service and experience.”

“Fairstone allow autonomy, but they’ve got their arms around you in terms of regulation, compliance, and support. So, I feel like we have the best of both worlds. We are autonomous, independent, whole of market –  but they’ve got our back and provide peace of mind of a national firm.”

Joining Fairstone

“From day one, Fairstone provides a family feel– big enough to provide the support of a national business but  small enough to care. They were there for us from day one – that’s before we brought one client over. They stood shoulder to shoulder to show we want you; we trust you. I’ll never forget that support as it’s probably been one of the most challenging times of my professional career.”

“Remaining independent was an extremely important factor. As an independent financial adviser, I didn’t want to lose the badge I have built up over many years and I also think it’s important to my clients. A lot of the times when we’re moving clients across, the first question they ask is are you remaining independent. It’s the Gold Star within the business.”

“Through streamlining my client bank, I have been able to offer my clients a much more attractive fee model, while Jordan’s new clients are onboarded with more attractive terms.”

“Jordan has a smaller client bank and the rest of his career in front of him, so we always saw it as a practice rather than individuals, that Darren and I would look after the client bank and through Fairstone’s client acquisition programme, Jordan will acquire new clients. So, we’re starting to build the business and have the support of Fairstone to help us integrate and nurture clients as well as introduce new ones.”

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Life after acquisition

In the video below we talk to the business principals of organisations who have previously been acquired by Fairstone. They discuss what life is like after acquisition, and the key advantages that Fairstone is able to offer.