JPTD consults on a $600k All In Offer for a $150k Advisor
Our client was a part-time financial advisor with 15 years of experience. She has a passion for financial planning but didn't necessarily want to choose the investments, spend time doing client service or dealing with compliance. She was looking for a firm that had a need for someone to run their planning department and would partner her with an advisor who could execute the tasks that she didn't want to do.
The client's goals are:
- Find a company that would buy her wealth management revenue at a competitive multiple
- Be able to keep and grow her financial planning revenue (presently $50k/year)
- Get some compensation for acquiring new planning clients and referring them to the firm
- Have the flexibility to pursue her outside activities
- Up front consideration - $400k
- Consideration at the end of year 1 - $200k assuming 90% of assets move over. Pro rata less than 90%.
- Ability to keep existing financial planning revenue as well as keep 100% of future planning revenue from new and existing clients
- 25% of all commission and fee products referred to new firm at an 80% payout
- Maintains equity in all planning fees and commissions to resell at a later date