$15.04m Wirehouse Team Brings In $119M All In Offer
Practice Background
Our client is a team of 31 advisors across 10 locations. 81% of its revenue is fee-based and the remaning 19% is insurance, annuity, or commission related products. The team runs at a 30% CAGR rate in the practice and is looking for further growth.
Client Objective
The client's goals are:
Find a strategic partner to assist in nurturing existing advisors growth
Advisor autonomy in how they run their books of business
Ensure a plan is in place for the G2 advisors that would allow them to flourish
Secure a pathway to retirement
Key Data
Top line revenue - $15.04m
EBITDA - $6.52m
AUM - $2.3B
Product Mix: 81% fee-based, 19% annuities and trails
All-In Offer* Highlights
100% acquisition
Sell and stay model (ongoing payouts on both legacy and new clients)
$14.6m cash upon signing
$19.5m PE firm stock upon signing - immediately dividend paying
$11.4m cash payable upon conveyance of 95% of advisory revenue
$13m cash paybale upon conveyance of 95% brokerage revenue
$9.7m cash after 2nd anniversary (assuming T12 revenue is equal or greater than closing revenue)
$9.7m cash after 3rd anniversary (assuming T12 revenue is equal or greater than closing revenue)
$13.05m cash after 4th anniversary assuming a 10% CAGR
$27.7m following retirement
*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.