$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, 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.