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RIA Deal Structures Explained: Cash, Stock, and Earn-Outs
Are you considering an exit strategy but feel overwhelmed by the complex world of private equity and deal structures? It is time to clear up the misconceptions and look at the actual math behind modern wealth management acquisitions. Join Tyson Ray and Kim Kokenauer as they dive deep into the savvy world of private equity and private trades to help you plan a successful and confident exit.
In this episode, we explore why private equity firms have become the backbone of wealth aggregation and how their deal structures actually benefit sellers through tax-deferred stock and recapitalization opportunities. You will learn the specific breakdown of a typical deal, including the balance of cash upfront, stock percentages, and the importance of holdbacks. We also discuss the alternative of private buyers who offer more customization and cultural alignment for those not looking for a formulaic model.
Key insights from this conversation include:
- Why private equity is a savvy partner rather than an industry villain
- The standard 65/15/15 deal structure breakdown
- How earn-outs can add significant value to your final valuation
- The benefits of choosing a private buyer for cultural alignment
- Why the average age of selling advisors is dropping significantly
- The availability of 100 percent financing in today's market
Ready to take the next step in your professional journey? Subscribe to the channel for more guidance on planning a confident exit. Visit totalsuccession.com/podcast to download your free starter guide and learn about the SPACE framework. You can also find the book Total Succession on Amazon to help you exit on your own terms with full compensation and your clients’ best interests at heart.
If you are ready to prepare for a confident and well-planned exit, make sure to subscribe to our podcast for more insights. You can also find the book Total Succession on Amazon or visit our website to download the free starter guide and learn more about the SPACE framework.
TotalSuccession.com
TotalSuccession.com/podcast
FORM Wealth Advisors
Tyson Ray
Kim Cochenour
Tyson’s book - Total Succession: 5 Steps for Financial Advisors to Exit Confidently, Be Fully Compensated, and Keep Clients’ Interests First
Aaron Hasler on LinkedIn
Spruce Rock Capital
Peter Campagna
Wise Rhino Group
Rob Brown
Truest Fan Coaching
The Truest Fan Blueprint: Focus on What Matters to Achieve Your Most Cherished Goals by Rob Brown
Duncan MacPherson
View all episodes
By Tyson RayAre you considering an exit strategy but feel overwhelmed by the complex world of private equity and deal structures? It is time to clear up the misconceptions and look at the actual math behind modern wealth management acquisitions. Join Tyson Ray and Kim Kokenauer as they dive deep into the savvy world of private equity and private trades to help you plan a successful and confident exit.
In this episode, we explore why private equity firms have become the backbone of wealth aggregation and how their deal structures actually benefit sellers through tax-deferred stock and recapitalization opportunities. You will learn the specific breakdown of a typical deal, including the balance of cash upfront, stock percentages, and the importance of holdbacks. We also discuss the alternative of private buyers who offer more customization and cultural alignment for those not looking for a formulaic model.
Key insights from this conversation include:
- Why private equity is a savvy partner rather than an industry villain
- The standard 65/15/15 deal structure breakdown
- How earn-outs can add significant value to your final valuation
- The benefits of choosing a private buyer for cultural alignment
- Why the average age of selling advisors is dropping significantly
- The availability of 100 percent financing in today's market
Ready to take the next step in your professional journey? Subscribe to the channel for more guidance on planning a confident exit. Visit totalsuccession.com/podcast to download your free starter guide and learn about the SPACE framework. You can also find the book Total Succession on Amazon to help you exit on your own terms with full compensation and your clients’ best interests at heart.
If you are ready to prepare for a confident and well-planned exit, make sure to subscribe to our podcast for more insights. You can also find the book Total Succession on Amazon or visit our website to download the free starter guide and learn more about the SPACE framework.
TotalSuccession.com
TotalSuccession.com/podcast
FORM Wealth Advisors
Tyson Ray
Kim Cochenour
Tyson’s book - Total Succession: 5 Steps for Financial Advisors to Exit Confidently, Be Fully Compensated, and Keep Clients’ Interests First
Aaron Hasler on LinkedIn
Spruce Rock Capital
Peter Campagna
Wise Rhino Group
Rob Brown
Truest Fan Coaching
The Truest Fan Blueprint: Focus on What Matters to Achieve Your Most Cherished Goals by Rob Brown
Duncan MacPherson