$2m Independent Advisor Brings In $15m All In Offer

$2m Independent Advisor Brings In $15m All In Offer

JPTD consults on a $15m all-in offer for a $2m Independent Advisor

Practice Background

Our client is an independent advisor (IBD) running a high-margin solo practice with one full-time staff. She acquires a significant volume of new clients through referrals and has a strong CAGR (growth rate) averaging over 20% per year over the last 3 years. Her success is based on building deep client relationships through a disciplined financial planning process in a major growth market.

Client Objective

The client's main goals are:

  • Continue to practice for 5 more years
  • De-risk through a liquidation event to lock in attractive valuations
  • Gain additional support to focus time on high-value tasks/work-life balance
  • Create tax efficiency in deal terms

Key Data

Top line revenue - $2m
EBITA - $1.6m
AUM - $150m
# of clients - 300
5-year CAGR - 20%+
Years in business - 25+
95%+ Fee Based

All-In Offer* Highlights

Headline Price (consideration) - $15M (7.5 X revenue, 9.37 X EBITDA)
Paid at Close - $5.4M
Earn outs over 3 years - $4.1M
Additional Monetization event - $5.55M
Payout Compensation over 6 years - $3.63M
Total Potential Deal Value = $18.60M (9.30 X revenue, 11.62 X EBITDA)

*An All In Offer includes any money paid upfront, signing bonus, salary and potential earn-outs based on growth. It does not include retirement or overrides on production. Assumes you hit all required transition, retention and growth expectations.