Advice businesses bought out by Fairstone attain an average 116% of their original sale value with 25% of the acquisitions receiving more than 20% above their target earn-out value, according to data from the firm.
The consolidator and Chartered financial planning operation said its downstream buy out (DBO) programme resulted in all its acquisitions either meeting or exceeding their target sale values. It added that it was the "only acquirer to have an open-book policy on these results," according to its CEO Lee Hartley. An earn-out is where all or part of a purchase price is linked to the future financial performance of a target firm. Fairstone-acquired practices received an average 116% through the earn-out process, it said, up from 111% in the first round of analysis in 2020. Some 25% of f...
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