Fairstone enhances DBO model to support increased valuations for high-growth firms

Fairstone has launched an updated version of its proven Downstream Buy Out (DBO) model, placing greater emphasis on driving higher valuations for growth-focussed wealth advisory firms.

These enhancements include a more dynamic valuation framework, directly tied to business performance and client outcomes, enabling firms to realise greater value as they grow.

The Fairstone DBO model has consistently provided an alternative to traditional consolidator offers. Rather than requiring a full sale, Fairstone invests in a minority stake at the outset and then delivers operational and financial support while principals remain fully independent until their chosen transaction window. This structure allows firms to scale efficiently and confidently, supported by Fairstone’s infrastructure, and matched with a proven ability to exceed capital expectations.

Designed for ambitious firms with strong growth objectives, the revised model delivers capital on day one together with a flexible valuation framework that evolves as the business grows. The model ensures firms that succeed in growing their profits are rewarded with higher valuations, aligning business performance directly with financial outcomes.

Over the last 12 years, Fairstone has successfully partnered with more than 90 firms through the DBO model. These recent changes reflect the firm’s ongoing commitment to meeting market demands and ensuring the model remains competitive, attractive, and aligned with the priorities of business owners seeking to maximise their ultimate sale value.

Lee Hartley, CEO of Fairstone, commented: “We have refined our offering to ensure that firms with genuine growth potential are recognised for their performance. The updated DBO structure provides the clarity and flexibility needed for firms to grow with confidence, knowing that their valuation will reflect the results they achieve. We are focused on helping firms build long-term value, and our goal of reaching £40bn in client assets by the end of 2030 will be achieved through partnerships with firms that share our vision for sustainable growth and delivering exceptional service to our clients.”

The updated model offers capital investment, operational resource, and regulatory support, allowing firms to focus on developing their performance without being restricted by back-office or compliance workload. It also offers firms the ability to sell at the optimum time, ensuring they realise maximum value when the time is right for them.

Steve McNicol, Chief Development Officer, added: “The updated DBO model enables firms to establish a new growth trajectory while retaining control. With access to capital, capacity, and resource from day one, businesses can reach their goals more easily. Firms can now align their business growth with their valuation and sale strategy, ensuring they capitalise on every ounce of their hard work.”

Lee Hartley concluded: “We understand what drives growth and how to underpin it. Having worked with close to a hundred firms, we know what successful partnerships look like. These revisions to the DBO model offer a structured and scalable route for firms looking to fulfil their aspirations. It will continue to be a key contributor to our wider growth plans as we work towards our next milestone.”

With a target of £40bn in client assets by 2030, Fairstone is focused on partnering with firms that are aligned with its vision and who are ready for the next stage of growth. The updated DBO model ensures these firms receive the necessary capital, tools, and infrastructure to build long-term, profitable businesses.