JPTD consults on a $119mm all-in-offer* for a $15.04mm Wirehouse team
Practice Background
Our client is a team of 31 advisors across 10 locations. 81% of its revenue is fee-based and the remaining 19% is insurance, annuity, or commission-related products. The team runs at a 30% CAGR rate in the practice and is looking for further growth.
Client Objective
The client's goals are:
- Find a strategic partner to assist in nurturing existing advisors' growthAdvisor autonomy in how they run their books of businessEnsure a plan is in place for the G2 advisors that would allow them to flourishSecure a pathway to retirement
Key Data
Top line revenue - $15.04m
EBITDA - $6.52m
AUM - $2.3B
Product Mix: 81% fee-based, 19% annuities and trails
All-In Offer* Highlights
- 100% acquisitionSell and stay model (ongoing payouts on both legacy and new clients)$14.6m cash upon signing$19.5m PE firm stock upon signing - immediately dividend-paying$11.4m cash payable upon conveyance of 95% of advisory revenue$13m cash payable upon conveyance of 95% brokerage revenue$9.7m cash after 2nd anniversary (assuming T12 revenue is equal or greater than closing revenue)$9.7m cash after 3rd anniversary (assuming T12 revenue is equal or greater than closing revenue)$13.05m cash after 4th anniversary assuming a 10% CAGR$27.7m following retirement
*An All In Offer includes any money paid upfront, signing bonus, salary and potential earn-outs based on growth. It does not include overrides on production. Assumes you hit all required transition, retention and growth expectations.