selling your financial practice? how to make a higher multiple
DESCRIPTION
Considering selling your Financial Practice? Learn how to get paid a higher multiple than the Standard Multiple Model with Financial Advisor Continuity's Sell and Stay Model.TRANSCRIPT
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Get Paid A Higher Multiple
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John is considering selling his financial practice.
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John’s practice generates $300,000 total trailing 12 GDC.
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A Closer Look at John’s Practice
$300,000 practice total trailing 12 GDC
CommissionBusiness
30%
Fee Based Business
70%
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Let’s compare the
Standard Multiple Payout Model
with Financial Advisor Continuity’s
Sell and Stay Model
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The Standard Multiple Model
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The Standard Multiple Model
2xFee-Based Business Payout
$210,000 x 2
$420,000
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The Standard Multiple Model
2xFee-Based Business Payout
$210,000 x 2
$420,000
Commission Business Payout
$90,000 x 1
$90,000
1x
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The Standard Multiple Model
TotalPayout
$510,000
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The Standard Multiple Model
TotalPayout
$510,000
Multipleof
1.75
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How does Financial Advisor Continuity’s Sell and Stay model
benefit John?
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The Financial Advisor ContinuitySell and Stay Model
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Up Front 33% Payment $168,300
The Financial Advisor ContinuitySell and Stay Model
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Earn Out$168,300
Up Front 33% Payment $168,300
The Financial Advisor ContinuitySell and Stay Model
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Earn Out$168,300
Note$168,300
Up Front 33% Payment $168,300
The Financial Advisor ContinuitySell and Stay Model
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Earn Out$168,300
Note$168,300
Part-time Work*
$180,000Up Front 33% Payment
$168,300
The Financial Advisor ContinuitySell and Stay Model
* An example, individual circumstances will vary.
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Earn Out$168,300
Note$168,300
Part-time Work*
$180,000
Earn Out Increase*
$25,000
Up Front 33% Payment $168,300
The Financial Advisor ContinuitySell and Stay Model
* An example, individual circumstances will vary.
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The Financial Advisor ContinuitySell and Stay Model
Total compensation
$709,900
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The Financial Advisor ContinuitySell and Stay Model
Total compensation
$709,900
Multiple of
2.4
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Sell and StayStandard Payout
How does the Standard Compare to Our Sell and Stay Model?
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Sell and StayStandard Payout
How does the Standard Compare to Our Sell and Stay Model?
Compensation: $709,900Compensation: $510,000
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Sell and StayStandard Payout
How does the Standard Compare to Our Sell and Stay Model?
Compensation: $709,900Compensation: $510,000
Multiple ofMultiple of 1.75 2.4
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Sell and StayStandard Payout
How does the Standard Compare to Our Sell and Stay Model?
Compensation: $709,900Compensation: $510,000
Multiple ofMultiple of 1.75 2.4
$199,990That’s an increase of
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Our Sell and Stay Model yields a
larger multiple and higher payout.
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You work part time – when and
where you choose.
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You focus on the relationships
you’ve built with your clients and
delegate the rest to us.