Acquiring, building & managing exceptional companies

We acquire good financial-services businesses. Occasionally we buy truly exceptional ones.

Exceptional businesses represent a lifetime of effort and talent. They share three traits we value:

• an outstanding manager
   
• consistent profitability
   
• above-average growth
   

Vendors of exceptional businesses often sell for health, estate planning, or other life changes. They share one more thing: a desire for their business to continue operating in line with the history and values that made it exceptional.

Finstow recognises the value of these rare companies. After acquisition we preserve the qualities that made them exceptional and allow them to continue operating as they have in the past.

Good financial-services businesses are more common and are typically first or second in their niche. They are building a track record of growth and earnings. When we buy a good business we diagnose why it has not yet become exceptional. Then we provide coaching and resources in areas such as values and capital allocation, profit-sharing programs, benchmarking across the group, management training and ongoing mentoring.

We do not run day-to-day operations. Managers and employees at our subsidiaries continue to operate their businesses. Managers who are excited to build something exceptional and who are open to new ideas typically flourish at Finstow.

We are open to discussing any opportunity. Our preferred profiles are below.

We welcome confidential approaches from principals or representatives of exceptional firms that meet these criteria:

• Mid- to large-sized financial-services businesses (minimum £1m EBIT)
   
• Consistent earnings and growth (strong EBITDA and revenue growth, typically 20%+ p.a.)
   
• Experienced and committed management team
   
• A decided offering price
   

We welcome approaches from principals or representatives of good firms that meet these criteria:
 

• Revenue of at least £2m
   
• A broad customer base (hundreds or thousands, not dozens)
   
• Limited, unimposing competition in the niche
  
   

• We promise the strictest confidence and will normally respond to enquiries within one business day.
   
• We do not pursue hostile takeovers.
   
• While we prefer full ownership, we will structure deals that allow vendors to retain a stake if they wish to remain involved, especially for exceptional or large businesses.