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$798k EBITDA RIA Brings In $11.2M All In Offer

Practice Background

Our client is a 9 person RIA team. 99% of the firm's revenue is fee-based. The team runs at a 15% CAGR rate in the practice and is looking to scale back their every day roles in the firm while continuing the growth of the practice. 

The client's goals are:

  • Find a strategic partner that would permit them to extract most or all of the equity from their efforts 

  • Retaining them in roles to continue the growth and operations of the firm 

  • Working for the next 5 years (or longer) but with their roles scaled over time to allow for greater flexibility in the future

Client Objective

Top line revenue - $1.8m

EBITDA - $798k 

AUM - $220M

Product Mix: 99% fee-based. 1% Financial Planning Fees/Consulting Fees

Key Data

  • 100% acquisition

  • Sell and stay model 

  • $3.9m cash upon signing

  • $1.5m PE firm equity upon signing

  • 798k cash after 2nd anniversary (assuming T12 revenue is equal or greater than closing revenue)

  • $798k cash after 3rd anniversary (assuming T12 revenue is equal or greater than closing revenue)

  • $1.19m cash after 4th anniversary assuming a 10% CAGR 

  • Additional 399k cash after 4th anniversary assuming a 15$ CAGR 

  • $2.4m following retirement 

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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