Succession Planning and Acquisition Profiles

Succession Planning and Acquisition Profiles

Colwyn Investments is interested in honoring the value and structure that you’ve built.

Flexibility is key and we believe that whatever is designed has to work for all involved. Having established that as a premise, I generally see that opportunities I put together land in one of three models;

1- acquisition,

2- transition, or

3- long term revenue share.

At Colwyn Investments, I sincerely believe in the mantra, “the client first and always”. Our intent is to provide the highest level of service possible to your clients and to honor the legacy that you’ve built through your business.

Three Models


Together I arrange for a third-party evaluation for your book of business. Elements that impact the value of a book have to do with things like; average asset size, number of clients, average age of clients, amount of non fee-based revenue, ties to specific products or companies. After a value for the business is established, deal terms are structured that are comprised of primarily two components; lump sum cash and carry back funds paid from future earnings. The ratio of those two things varies greatly based on the needs of the seller.


This model is a phased restructure of the ownership, service and support of your book. The transition follows these simple steps:

1. In the first year, I, in counsel with you may keep your brand name or if changing the name, the name change of the firm would be announced, but you are still very much involved just as you would have been. You will help your clients to get comfortable with Colwyn's programs, sevice structure and team, in order to help smooth the way forward for everyone. You will become a Colwyn Investments IAR and receive 100% of the normal advisor's share of the client fees. This share will be defined by a custom payout grid built for your business and needs.

2. In the second year, you will be retired. I’ll have you answering only the occasional question from your former clients. I will receive 85% of the grid-based Advisor's fees from those clients that stay with Colwyn Investments through the transition.

3. From year three on, the payout tiers down gradually: 70%  in the third year, 55% in the fourth, 40% in the fifth, and 25% in the sixth. During this period you would remain an IAR of Colwyn Investments, so that payments to you are based on client assets following applicable laws and regulations. This structure results in you receiving over the five years following your official retirement, a little more than the industry average for practice purchases.

Long Term Revenue:

Some practice owners have a great need for longer term income stability.  This program is designed to satisfy that concern.  After a review of your circumstances, needs and expectations, a fee share structure will be established based on the fee revenue being generated by the book of business being acquired.  This fee split – typically 15% to 20% - will continue for either a defined period or for the life of the seller.