Wealth management firm Fairstone is set to launch a downstream buyout (DBO) acquisition model in Ireland following its success in the UK.
The DBO model is designed to integrate companies into Fairstone’s business model prior to acquisition, allowing companies to leverage Fairstone’s investments, technology and customer base to maximize the value of their capital.
The company said the model could be an attractive position for companies that are opposed to an outright sale but are looking to expand investments or partnerships before a future sale.
Fairstone entered the Irish market in 2022 with the acquisition of Pax Financial, a Dublin-based company that owns the wealth guidance brand Ask Poll.
Fairstone Ireland CEO Paul Merriman “DBO is a market leader in the UK and we are excited to extend this offer to Ireland’s leading financial planning firm.”
“We are currently actively seeking partnerships with companies that are not interested in an outright sale. We focus on supporting.
“This is not your typical M&A transaction. It is created for forward-thinking business leaders who are focused on their business and want to maximize future growth.”
Fairstone added 12 companies in the UK under the DBO model in 2023 and the group is now headquartered in Sunderland and operates from approximately 55 locations. It employs over 1,200 staff and oversees funds of £15 billion (€17.4 billion).
lee harvey, CEO of Fairstone Group, said, “Over the past 15 years, we have proven the effectiveness of this model. Our unconventional approach to deal-making consistently outperforms year-over-year. “The latest figures show the fully acquired company is exceeding its sales target.” The average value was 113%. ”
Photo: Paul Merriman, Fairstone CEO