top of page

$1m Pure RIA Brings In $6m All In Offer

Practice Background

Our client is a pure RIA specializing in the money management for contingency fees attorneys. They are a pure RIA with 100% of its revenue being fee-based. This was not an ensemble practice but a division where there was one lead advisor and one staff person. The company had built these assets over 7 years and wanted to stay in the trust and custodian services business versus asset management.

The client's goals are:

  • Partner with a world-class firm that puts advisors and clients first

  • Find a company that could assume the asset management of the RIA.

  • Create an ongoing solicitor's agreement for new business in the future.

  • Have a smooth an easy transition of client accounts.

Client Objective

Top line revenue - $1.0m

EBITA - $840,000

AUM - $110m

# of clients - 125

Average Client Age - 50

Product Mix: 100% fee-based

Key Data

  • 100% acquisition

  • Sell and create ongoing solicitors agreement

  • $3mm cash upon signing/1mm company stock upon signing

  • $1mm for 95% revenue retention end of year 1

  • $1mm for 95% revenue retention end of year 2

  • Ongoing solicitor's agreement for 25% on new business for 5 years

  • Potential buyback of revenue stream with guaranteed multiple after five years

  • Advisor is not staying in the practice, so no ongoing compensation

  • Deal could be worth more than 6x depending on the back end of solicitor's agreement

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.

bottom of page