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$150k Advisor Brings in $600k All In Offer

Practice Background

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

Client Objective

Top line revenue - $200k ($150k wealth and $50k financial planning fee's)

AUM - $33m

Total cash value life insurance - $1.2m

5 year CAGR - 8%

Key Data

  • 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

All-In Offer* Highlights

*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.

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