JPTD consults on a $48m all-in-offer* for a $4m Hybrid RIA team

Practice Background

Our client is a hybrid practice with 3 second-generation advisors. The bulk of their business revenue derives from wealth management. The firm was established in 1994 and has had a growth rate of approximately 15% a year over the past 5 years. The client is a referral-based practice with the primary source of new business being client engagement events.

Client Objective

The client's goals are:

  • Partner with a firm that can provide support for continued growth
  • Have the opportunity for the Second Generation to excel and reap the benefits of continued growth
  • Join an organization that recognizes and agrees with the high ethical standards that have been established within the practice
  • Provide support for a reasonable transition for clients

Key Data

Top line revenue - $4.1m
EBITA - $1.75m
AUM - $450m
# of clients - 400
5-year CAGR - 15%
Years in biz - 28

All-In Offer* Highlights

10-Year Total Value Forecast and Highlights

Up Front Consideration


Ongoing Compensation **

Comp On Existing Business $12.8m

Comp On Future Business $10.2m

Long Term Considerations

5 Year Growth Accelerator $755k

LTGI $5.7m

Owner's Equity Participation ***


Total Value Created


*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.
** Compensation amount reflects total compensation paid to advisors and is not necessarily all paid to seller or head of office.
*** Based on firm's stated goal $10bn in 10 year and estimated valuation at that point in time.