$150k Advisor Brings in $600k All In Offer
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
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%
All-In Offer* Highlights
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
*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.