Fairstone refines buyout terms to focus on high-growth potential IFAs

Updated DBO model to ‘support increased valuations’

Jenna Brown
clock • 2 min read

Fairstone has updated its downstream buy out (DBO) model to give enhanced support to growth-focused IFA practices

Fairstone said the overhaul would place "greater emphasis on driving higher valuations for growth-focused wealth advisory firms".  It said its valuation framework would be directly tied to business performance and client outcomes, adding this would enable firms to "realise greater value as they grow".  The DBO model sees the firm take a minority stake in an advisory business looking to sell. Fairstone then provides operational and financial support, giving principals time to grow their business before full acquisition.  It said the revised DBO model would focus on "ambitious firms ...

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