Wealth Management LBO Case
I am new to this industry, randomly got thrown into a process with a case to acquire a wealth manager, scaling revenues 10% per annum, no details on fees for managers, around 25% net margins (likely all convert to FCF). Thoughts on what all to critically think through? I have obviously highlighted diligence areas (concentration/ type of client/ is growth even possible/ fee structures, etc.).
Any thoughts on unit economics or broadly valuation would be great. I used EV/EBITDA multiple for now but seems like revenue multiple makes more sense (fee structures differ too much). I think after a certain point, every $ is largely net profit (once hurdle is met by advisor, anything above that accrues to firm).
Any resources recco would be great too!