Current Deal Structure Landscape – Equity Ownership Options for the Next Generation-PowerPoint presentation

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The document is a presentation titled "Current Deal Structure Landscape – Equity Ownership Options for the Next Generation" delivered by Marcus Hagood, Director at FP Transitions - Equity Management Solutions. It is aimed at discussing current market trends and data relevant to equity ownership and succession planning within the financial planning and RIA (Registered Investment Advisors) sectors.<br /><br />**Learning Objectives:** <br />The presentation outlines key learning objectives but they are unspecified in this document excerpt.<br /><br />**Industry Activity Overview:**<br />The presentation references various reports to estimate the total industry activity, citing sources such as ECHELON, DeVoe & Company, Tiburon Strategic Advisors, Mercer Capital, and Citywire. A notable point is the increase in RIA M&A (Mergers and Acquisitions) activity, with a significant rise driven by private equity.<br /><br />**2023 Market Drivers and Data:**<br />Market drivers influencing 2023 trends are mentioned, although specifics are not provided in this excerpt. Market data reflects the years and types of RIAs and RR/HYBRIDs being evaluated, including revenue multiples, cash at close percentages, and tax allocations. For example, the revenue multiples range from 2.7 to 3.35 for RIAs and 1.43 to 3.31 for RR/HYBRIDs. The cash at close statistics are 50% for RIAs and 42% for RR/HYBRIDs. There have been 165 transactions Year to Date (YTD) in 2023, with 93% of value attributed to goodwill.<br /><br />**Valuation and Succession:**<br />The valuation segment likely delves into how businesses in this sector are being valued, though detailed points are not given here. Advisor transition options and the case for internal succession are discussed, emphasizing the importance of planning for future leadership within firms.<br /><br />**Conclusion and Q&A:**<br />The presentation closes with thanks to NAPFA members and opens the floor to a Q&A session, along with additional resources for attendees.<br /><br />This document serves as a broad overview of current trends and structures in equity ownership and succession planning within the financial advice industry.

Keywords

Equity Ownership

Succession Planning

RIA M&A

Private Equity

Market Trends

Financial Planning

Valuation

Advisor Transition

Internal Succession

Goodwill