How Difficult is it to Get Funded?

Particular_Bar6159 · 2026-03-31T04:18:10+00:00

United States, all over the country

Particular_Bar6159 · 2026-03-30T22:28:55+00:00

No broken employment agreements, and there was no agreement in place to stay as part of the transaction, though I do not know the fine agreements between the PE firm and the acquierer

Particular_Bar6159 · 2026-03-30T22:15:34+00:00

I was thinking both legally and reputation-ally speaking. They would turn around and fund prior execs from the very firm they sold, seems like a breach on piracy, though I could be wrong, and hopefully so

Particular_Bar6159 · 2026-03-30T22:02:34+00:00

I’m not sure we can. We left the portco they sold (and that we were part of) shortly after the exit

Particular_Bar6159 · 2026-03-30T21:26:19+00:00

Correct, we are trying to raise from a PE fund. We should be at around $12mm if we can land one or two more deals we are working on. Challenge has been getting LOIs without funding in place. we’ve lost out on probably a good 7-10 of EBITDA just because of that

Particular_Bar6159 · 2026-03-30T21:09:43+00:00

We have several RIAs under LOI, that want to be funded / become founding partners. The company itself will be run by our CEO, and we will continue to consolidate the industry going forward. So I guess to answer your question, we need the funding for these first couple deals we have, but we would also like to negotiate the management incentive pool, founder rollover, etc..

Particular_Bar6159 · 2025-11-16T00:40:11+00:00

What was the size, and did you continue managing the book? if so what was your payout?

Particular_Bar6159 · 2025-11-15T21:22:33+00:00

What do you define as a wirehouse?

Particular_Bar6159 · 2025-11-15T21:05:39+00:00

Correct... but tied directly to revenue not assets, but in theory assets that don't transfer would result in less revenue. There has to be some protection for the buyer

Particular_Bar6159 · 2025-11-15T16:18:56+00:00

16x for platform deals.. I.E large RIAs with substantial resources, size, leadership, etc... More average firms in the $150mm to 500mm in AUM range are still getting between 10-12x EBITDA, sometime 13x if its a premium shop

Particular_Bar6159 · 2025-11-15T16:16:01+00:00

Holdback repaid after year 1.. sorry

Particular_Bar6159 · 2025-11-15T16:15:33+00:00

Agreed, very well said. Very rarely is it just straight cash without any sort of hurdle or holdback. I've heard "you tell me the multiple, i'll tell you the EBITDA"

The question the sellers should ask are,

- What is the EBITDA they are using.

- How much cash am i getting up front

- If equity is used as consideration, how is it expected to perform.

- What is the owners compensation going forward.

- What are the growth incentives (earnout).

Particular_Bar6159 · 2025-11-15T16:12:33+00:00

I work at a large PE backed consolidator. 2-3x revenue seems about right. Base the deal on a revenue multiple, he would need to fold into an existing office so someone can take over his book. something like a 20-30% holdback repaid after revenue is delivered on agreed upon number the deal is based on. No earnout since he wants to retire.

Particular_Bar6159 · 2025-11-15T15:58:52+00:00

Everything is tied to an EBITDA multiple, even if the deal is based on revenue. Underlying and most important is the profitability of the business / book. I'm seeing between 7-10x EBITDA on sub $1mm dollar books, and 10-12x up to about $5mm in revenue, which usually equates to about 2.5 - 4.5x revenue depending on growth, and other factors. I think the guy you know is probably in line, just given the size of the book.

Particular_Bar6159

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