The Fine Print

Most financial advisors say they have a contingency plan. Far fewer have one in writing. In this episode of the SRG Exchange, Julia Sexton is joined by David Grau Jr., Parker Finot, Kristen Grau, and Ryan Grau to talk through what happens to your practice if you die, become disabled, or can't serve your clients tomorrow.

The panel explains how contingency planning differs from succession planning, compares one-way, reciprocal, and retainer agreements, and shares real stories of what goes wrong when a plan is missing or out of date. They also cover how to set a value someone can execute quickly, why a stated multiple tied to a recent valuation often works better than a valuation at the time of the event, and how to structure the sale for capital gains treatment.

Learn more about contingency planning: https://www.successionresource.com/contingency-planning/

Every advisory firm acquisition carries risk. The question is not how to eliminate it -- it's how to account for it so the deal still gets done.

In this solo episode of The Fine Print, David Grau Jr. breaks down the tools buyers and sellers use to structure deals that acknowledge risk while still getting them done -- from clawback clauses and earn-outs to stretch notes and extended amortization.

Topics covered:

• Why higher prices mean buyers carry more risk -- and what to do about it
• The difference between external acquisition risk (client attrition) and internal deal risk (profit erosion)
• How PE-backed aggregators structure deals to justify premium prices while protecting their downside
• Clawback and retention clauses: what to measure, when, and what target to set
• Revenue vs. AUM vs. client headcount as retention benchmarks -- and when each works against you
• The stretch note: tying internal buyer payments to profit distributions so the deal cannot structurally fail
• Extended amortization and other creative financing tools now available from industry lenders
• Why the goal is not a win-win -- it is both parties walking away equally unhappy

Private equity is no longer just for billion-dollar firms. PE-backed aggregators are moving downstream, and advisors with $150M to $500M in AUM are getting unsolicited offers. But are these deals as good as the headlines suggest?

In this episode of The Fine Print, David Grau Jr. and Kristen Grau break down what advisors need to know before entertaining a PE-backed offer -- from understanding deal structure to knowing whether your firm is actually the right fit.

Topics covered:

•      The difference between direct PE investment and PE-backed aggregators

•      Why the definition of a "seller" is shifting to advisors aged 50 to 70

•      How stay-on requirements and growth targets change the deal calculus

•      What financial normalization means -- and why it can shrink your effective multiple

•      The recurring vs. non-recurring revenue debate in PE negotiations

•      How to get your P&L in order before going to market

•      Why time kills deals and what to do when an offer lands on your desk

•      Best price vs. best terms: you rarely get both

Most advisory firm owners know they need to pay their people well. What's harder to figure out is whether they're paying them the right way; and in a market where the go-to compensation benchmarks have largely disappeared, even knowing how much to pay has become its own challenge.

In this episode of The Fine Print, David Grau Jr. sits down with Julia Sexton, CVA, Director of Team Solutions at SRG, to unpack the full picture of compensation design for advisory firms. The conversation covers why production-based compensation quietly undermines team-based goals, how farmers and hunters on your team require fundamentally different compensation structures, and why the grid-based payout model creates a margin problem that only gets worse over time.

Julia walks through the BBP model (base, bonus, and profit) and how eligibility criteria can protect against fee discounting and other behaviors that erode firm value. The episode also covers how to back-test compensation changes before rolling them out, how to create a career path that frees up capacity without recruiting expensive lateral hires, and why future-proofing your compensation model now means fewer headaches every year down the road.

RIA valuations are at record highs, private equity is reshaping deal structures, and internal succession is evolving faster than ever. In this episode of The Fine Print, David Grau Jr. breaks down the real M&A data from 2025 and maps out what financial advisors should expect for the rest of 2026.

David digs into the latest revenue and EBITDA multiples, explains why the most profitable firms don't always command the highest valuations, and dissects the typical private equity deal structure: 40% cash down, 30% performance-based payments, and 30% rolled equity. He also covers how deal terms are shifting, why nearly a third of transactions last year were internal equity sales, and why phantom equity programs are surging in popularity as a succession planning tool.

Whether you are a buyer preparing for inorganic growth or a seller weighing your options, this episode gives you the benchmarks and strategic context you need to make informed decisions in today's M&A environment.

Topics covered:

•      2025 RIA valuation multiples (3.27x revenue, ~10x EBITDA)

•      Why higher profit margins can lead to lower valuation multiples

•      Private equity deal structures and what they really look like

•      Shifting deal terms: down payments trending lower, more internal sales

•      The rise of phantom equity (SARs and liquidation rights)

•      Compensation plan redesign: from grid-based to salary-plus-bonus

•      Advice for buyers and sellers heading into a high-volume deal year

Most advisory firm owners think they're 80% done with a deal once they've found a buyer and shaken hands on a number. In reality, they may not even be in the first inning.

In this episode of The SRG Exchange, SRG's consulting team and General Counsel pull back the curtain on what firm owners consistently get wrong about M&A, from timing and valuation methodology to entity structure and equity sharing strategy.

The group covers when to bring in an outside team and what happens when you wait too long, why a business's appraised value and its sale price are not the same thing, where market multiples landed in 2025, why internal succession deals rarely match the economics of an external sale, and how entity planning and equity sharing have shifted from tools reserved for the industry's biggest firms to essentials at nearly every size.

Regulatory scrutiny is evolving, and RIAs involved in acquisitions or succession transitions are starting to see a new area of exam focus: how the SEC’s Marketing Rule endorsement provision may apply to certain client transition communications.

In this episode of The Fine Print, SRG General Counsel Todd Fulks is joined by Christine Ayako Schleppegrell, Partner at Morgan Lewis and former SEC attorney, for a timely discussion on what firms are seeing in exams and deficiency letters, and why this issue is emerging now.

You will hear how a rule many advisors associate with testimonials and advertising is beginning to surface in the M&A transition context, and what firms can do to stay prepared.

Employment agreements are often treated as a formality, until a key employee leaves, client relationships walk out the door, or a succession plan starts to unravel.

In this episode of The SRG Exchange, SRG’s consulting team and General Counsel break down the real-world role of restrictive covenants in advisory firms, and why the biggest risk is often having no agreement in place at all.

The group explores the difference between non-competes, non-solicits, and no-serve provisions, why enforceability varies state by state, and how firms can create protections that are both practical and reasonable.

Entity structure is not just paperwork. It shapes how your firm grows, shares ownership, and eventually transitions.

In this episode of The SRG Exchange, SRG’s consulting team and general counsel break down what advisors need to know about entities and entity maintenance, and why firms often outgrow the structure they set up years ago.

You’ll learn:

• How entity design affects internal succession and equity transfers
• Why S-corp rigidity can create hidden obstacles
• What ownership classes, voting rights, and governance terms actually change
• What entity maintenance looks like in practice and why it matters
• Common mistakes that create risk during growth, M&A, or exit

Whether you are building your first entity or planning for future owners, this episode offers practical clarity on structuring your firm for long-term flexibility and value.