Many excellent wealth management firms have outside owners such as a bank, a roll-up or a non-employee investor. Others have large portions of their ownership held by inactive and/or retired employees. The long term viability of a firm with an outside owner, however, depends upon returning majority ownership to the people who currently work in, and have responsibility for building, the business.
Firms should be majority-owned by the people who currently work in, and have responsibility for building, the business.
We provide the funding for current employees to buy out outside shareholders. We have successfully completed separate transactions involving retired shareholders, roll-ups, banks and non-employee shareholders.
Restoring Ownership and Control for Management
Our buyout structures return a majority of a wealth management firm’s ownership and voting control to current management.
A Fair Price for Sellers
Convincing outside shareholders to relinquish their ownership can be challenging. While management may expect a discount, closing a deal nearly always requires paying fair value. With a combination of permanent capital and term debt, FN provides 100% of the financing required to structure a transaction that is attractive to all parties.