Fairstone has secured a total of £1.5m fee revenue and £130m of assets under management (AUM) for its business through the first eight deals announced in its new Individual Buy Out programme (IBO).
Building on its existing Downstream Buy Out programme for larger IFA businesses, the consolidator firm said the IBO programme was designed to enable individual advisers "to build a long term, tax-efficient retirement fund and ensure continuity of service for their clients".
Under the agreement, it explained, IFAs receive an initial capital sum, as well as a proportion of ongoing fee revenue for an agreed period of, typically, 15 years. Fairstone added it would assist with all succession planning, including candidate selection, legal, technical and regulatory support.
Fairstone chief executive Lee Hartley (pictured) said: "Our proposition enables quality advisers to realise the value of the business they have built, as well as securing a lucrative long-term income post-sale. Our research suggests the best time to sell a business is much earlier than many advisers believe and we are now able to help these individuals through that process and beyond."
He added: "The new proposition addresses an often-overlooked segment of the market, providing individual advisers with an attractive retirement solution where their clients costs will not increase and client choice will not reduce. We look forward to welcoming those individuals who have the vision to grow their business with Fairstone and secure an exit in the knowledge their clients are in the best possible hands."
‘Structured exit strategy'
On signing up to the programme, Devon-based IFA Paul Clarke, who focuses on retirement income and estate planning, said: "Joining Fairstone's offering for individual IFAs provides me with the certainty of a structured exit strategy, with additional financial security for my wife and the peace of mind my clients will continue to benefit from first-class advice."
And City of London-based adviser Russell Waller commented: "Signing-up to the Fairstone IBO works well for me as it secures my eventual exit strategy and creates a succession plan at the point when I choose to retire. This is vital for the future of my clients. In addition, I take a great deal of comfort from the fact my beneficiaries will be compensated should I pass away in retirement."
Other individual advisers who have joined the Fairstone IBO include City-based Bob Reich and Jacqueline Robinson and Brandon Pillar and Colin Mitchell, who are both based in Devon.
"Each adviser who joins Fairstone under the IBO programme will receive the full support of the company to enable them to grow their business and ultimately transition into retirement through a managed process," said Hartley. "With these tools in place, there is every opportunity for advisers to achieve significant growth leading up to retirement within a highly supportive framework."
Earlier this month, Fairstone added two IFAs, Brett & Randall Financial Services and Chilli Financial, to its Downstream Buy Out programme - a move that boosted its AUM by more than £250m.
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