Recently, I spoke with a $600 million AUM advisor who had walked away from two separate sell-and-stay opportunities.
At first glance, both offers looked attractive. But as he reviewed the agreements, he realized the bigger questions weren’t about the multiple. They were about his autonomy, long-term compensation, and how well the agreements would protect him over time.
In the end, he decided neither opportunity was the right fit.
When we wrapped up our conversation, he said something that stuck with me:
“Lesson learned… don’t fall in love with the multiple.”
I think that’s great advice. The multiple may grab your attention, but it’s only one piece of the equation. The structure of the deal, governance, culture, leadership, and your long-term role can have just as much impact on the outcome.
After more than 33 years working with wealth advisors, my recommendations have never changed:
• Have an experienced attorney review every legal document.
• Speak with advisors at different stages of the partnership, including those who have recently joined and those who have completed their earn-out.
The goal isn’t simply to find the highest offer. It’s to find the right long-term partner. Thoughtful due diligence and experienced legal and consulting guidance can make all the difference.