$1.1m IBD Advisor Brings in $4.8m All In Offer
Practice Background
Our client is a sole practitioner with an independent broker/dealer.
98% of the firm's revenue is fee-based. The practice runs at a 9% CAGR rate.
The client's goals are:
Having a full acquisition
Developing a robust succession plan
Ensure a seamless transition plan for his clients to a like-minded, client-centric firm
Client Objective
Top line revenue - $1.1m
AUM - $115M
Product Mix: 98% Advisory, 1% Trails, .5% Insurance
Key Data
100% acquisition
Sell and stay model
$2.3m cash upon signing
$990k PE firm equity upon signing
1.1m cash after 2nd anniversary (assuming T12 purchased gross revenue is equal or greater than closing revenue)
$50,000 cash after 1st anniversary (assuming 10% growth of purchased revenue)
$50,000 cash after 2nd anniversary (assuming 20% growth of purchased revenue)
$315,000 potential retirement payout
All-In Offer* Highlights
*An All-In Offer includes any money paid upfront, signing bonus, 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.