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Wealth Planning Firm

A three-state wealth planning firm with two decades of near-total client retention, earning recurring revenue from annuity portfolios plus in-house tax, retirement and legacy planning.

Business Highlights

  • A 99% client retention rate maintained over two decades
  • Recurring revenue from managing annuity and life insurance portfolios
  • Tax planning, legacy planning and retirement services are handled in-house rather than outsourced
  • Operates across three states already
  • Revenue has grown substantially over recent years

Considerations / Questions to Ask

  • What licences and registrations does the buyer need to hold personally, and in which states?
  • How much of the 99% retention is the firm and how much is the founder personally?
  • What is the split between one-off consulting fees and recurring product-based revenue?
  • What is the age profile of the client base, and what does that mean for assets under management over ten years?
  • Operating in three states multiplies the compliance burden. How is that resourced today?

Opportunities

  • The model is already proven in three states, so geographic expansion is repetition rather than experiment
  • Keeping tax and legacy planning in-house captures fees that comparable firms refer away
  • Annuity portfolios produce recurring revenue without repeat selling
  • A retention rate at this level makes referral generation the cheapest growth available