IFA consolidator Fairstone has revealed that its acquired firms are receiving an average of 111 percent of the original sale value.
According to data released by the firm, 17 percent received over 135 percent of the original sale value.
All firms received at least 100 percent of their cash consideration, which chief executive Lee Hartley described as a “major differentiator in the sector.”
“Some large consolidators are delivering earn-out payments that result in an average of between 80 percent and 90 percent of the original headline price negotiated for those acquisitions. Crucially this implies that some companies are getting even less than that.”
Fairstone attributed these results to its proprietary acquisition model.
“This is the key to their track record in enabling selling shareholders to optimise their sale value and receive all their capital value in every instance,” the firm said in a statement.
Fairstone’s Downstream Buy Out (DBO) strategy integrates IFAs into t...