$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.
Client Objective
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.
Key Data
Top line revenue - $1.0m
EBITA - $840,000
AUM - $110m
# of clients - 125
Average Client Age - 50
Product Mix: 100% fee-based
All-In Offer* Highlights
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
*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.