It’s common knowledge that the best time to start planning your business sale is when you launch it, but at the very least, at a point when you don’t need to. And that’s exactly the kind of firm we choose to partner with – one without an immediate need to sell.
In the same way that we advise clients to plan for their long-term financial future, we encourage business owners to think about their wider goals and objectives. Do they have a plan that involves succession for clients and staff and therefore maximises the value they’ve created in their business?
At Fairstone, we look to partner with growth focussed business owners with an entrepreneurial spirit, who can see beyond the transaction and are committed to maintaining sustainable growth in partnership with the wider Fairstone team.
In short, we believe that we can create more value together than apart and our five-layer enhanced proposition enables firms to reach their full potential, sharing in the upside of their growth to secure greater long-term value.
And with multiple opportunities to grow and unlock value, our approach means that all value isn’t crystallised at one point – after all why should creating value stop at the point of acquisition?
Firms joining us not only benefit from an optimised sale value, but they can also enjoy continued growth with the ability to increase profits through earn out payments, enjoy an attractive income and bonus, reap the benefits of the organisational changes and efficiency ‘seeds’ that were sown in integration and then of course, on-going value with continued opportunities after acquisition.
This includes access to an on-going profit share initiative which gives the potential to pay out up to three times annual salary over a rolling five-year cycle and through our growth funding, we can support you to lead an acquiring hub and make further bolt on acquisitions, so that you can continue to grow and create uncapped value long after the initial sale.
Building one cohesive business that is robust and can deliver sustainable growth all stems from successful integration. Fairstone’s unique business model means firms spend around two years in our partnership prior to acquisition.
The name partnership is a deliberate choice of word. Our role is as a partner, consultant, coach, sounding board – seeking out ways to help increase efficiencies, reduce costs and build a platform for long term, sustainable organic growth that will allow clients and staff to flourish.
Yes, there’s integration of processes and ensuring a consistent approach from an advice and regulatory perspective, but we all work together to make those operational changes early, while aligning cultures and values.
It’s true of M&A in most sectors that while a lot of time is spent on due diligence and negotiating the best price, not enough focus is given to life post transaction. What will it look like when the deal is done? Will clients and staff be treated like a commodity, or will they be recognised as the most important part of the decision?
Whilst due diligence and contracts are important, our priority and that of the firms we choose to partner with, is the whole journey – aligning goals, values and long-term ambitions to secure the best possible outcomes for shareholders, staff and clients to ensure they are all protected in the long-term.
As a result of this approach, we are proud to have a 98% client satisfaction rating on Trustpilot and be independently ranked the number one wealth management house in the UK. Another metric – a 96% client retention rate (and that figure includes death and divorce).
And for the business, beyond happy clients and staff?
Well, the financials speak for themselves….
By enabling business owners to benefit from multiple layers of value creation, our extended proposition can deliver overall value equivalent to between 12 and 18 times current profits, effectively doubling the market value of a business.
Now that truly demonstrates the power of partnership.
Don’t underestimate the value of your business, speak to one of our M&A team today to discuss starting your Fairstone journey.
|Learn more||Contact our M&A team|