Private Equity Offers for Financial Advisors: What to Know

PE-backed aggregators are quoting 10x, 11x, even 12x earnings. But what does that actually translate to in dollars? In this clip from The Fine Print Ep. 35, David Grau Jr. and Kristen Grau of Succession Resource Group walk through the normalization math that most advisors never see before they sign -- and why a headline multiple on a smaller earnings base can end up at the same place as a standard revenue deal. You will learn: Why PE buyers normalize your earnings and what expenses they add back in How $1M in fees at 10x can normalize down to the same value as a standard 3x revenue deal What replacement comp is and how it reduces your effective payout Why PE buyers focused on earnings cannot also penalize non-recurring revenue How to tell whether a headline multiple is actually a premium -- or just math that looks that way TIMESTAMPS 0:00 - Are PE deals good, bad, or neither? 0:05 - What the typical seller actually wants from a deal 1:57 - Why earnings normalization changes the picture 2:49 - Running the real numbers: the $1M fee example 4:23 - What normalization adds back to your expense base 5:10 - Why 10x earnings may equal 3x revenue 5:45 - The recurring vs. non-recurring debate in earnings-based deals 6:51 - You cannot evaluate earnings and revenue composition at the same time Want to know what a PE offer would actually mean for your firm's value? SRG works exclusively alongside sellers. Schedule a consultation with our team. Listen to the full episode: https://www.successionresource.com/to... Schedule a consultation: https://www.successionresource.com/sc... Connect with SRG: Website: https://www.successionresource.com LinkedIn:   / succession-resource-group   Email: sales@successionresourcegroup.com Phone: 503.427.9910 Address: 12570 SW 69th Avenue, Ste 100, Portland, OR 97223 Speakers: David Grau Jr., MBA - Founder & CEO, Succession Resource Group Kristen Grau - Succession Resource Group