FAQs

ADP is a boutique M&A advisory firm with deep roots in the wealth and asset management space. For more than 18 years, we’ve been laser-focused on supporting fee-only and fee-based wealth managers.

We have advised hundreds of firms —from $100M to $10B+ in assets under management (AUM) — on M&A transactions, strategic growth planning, valuation, and succession.

Our team brings decades of specialized experience helping independent firms maximize their value and chart the right path forward.

Visit the ADP Transactions page for the up-to-date list of the latest transactions we have executed.

We are not brokers — we are strategic advisors. Our work is bespoke, partner-led, and highly selective. We limit the number of clients we take on to ensure we give each one the attention and expertise they deserve. Our knowledge of the independent wealth management space, deep buyer network, and emphasis on long-term outcomes sets us apart.

We set our clients on the right course for growth and success, whether that’s internal succession planning, an external sale, buy-side advisory, capital raising or other customized M&A advisory services.

Yes — helping firms determine the right strategy to remain independent while enhancing and protecting enterprise value, is a core ADP service. We regularly advise firms on generation two (G2) equity structuring, management transitions, valuation, and internal succession.

Whether you are transitioning to a G2 team or bringing on a new partner with a book of business, we help structure deals that balance control, economics, and continuity, while increasing enterprise value.

ADP evaluates your business in a way that’s tailored to your firm's specific situation, whether you are preparing for an outside sale, a capital raise, structuring an internal equity transfer, planning for a next-generation succession, or simply want to know what your firm is worth today.

Our valuation process combines income-based and market-based valuation methods. In plain terms, we calculate your firm’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), which is the clearest measure of your business’s true profitability, alongside historical AUM growth trends, client demographics, fee structure, and revenue characteristics.

But the numbers only tell part of the story. We evaluate 25 to 30 specific value drivers that outside parties—private equity, other RIAs, minority investors-- actually care about. Qualitative and quantitative factors that can move your valuation meaningfully in either direction, and can be used as a blueprint to determine the right growth strategy for your firm.

Our analysis benchmarks your RIA against industry research and our own data from hundreds of valuations and completed transactions. The final deliverable gives you a clear expected transaction multiple (the price a buyer would likely pay, expressed as a factor of your annual earnings), which is what your firm would likely command if brought to market today, along with an honest picture of what's driving that number and where there's room to improve it.

Whether a transaction is on your immediate horizon or years away, knowing your company's value is one of the most important things you can do as an RIA and wealth management firm owner when determining your company strategy.

Related: Advice Dynamics Partners’ Business Valuation for RIAs

The honest answer: It's rarely about market timing. The right time to sell is when your firm is adequately prepped and your strategic goals are clear. Those two things can take longer to develop than most owners expect.

David Selig (Advice Dynamics Partners’ Founder and CEO) calls this the “era of smart partnering,” where RIAs considering a sale should view it less as an exit and more as a decision about how best to evolve. It may be an outside sale, a merger, a minority investment, an internal succession, or staying independent with better infrastructure. Each path requires deliberate planning, not a reaction to an unsolicited offer or a market move.

What we consistently see: Owners who plan two to three years ahead get materially better outcomes than owners who come to market reactively. A planned process lets you address value gaps, build out your G2 team, clean up financials, and approach counterparties from a position of strength.

If you're asking the question, it's probably time for a conversation. Not necessarily to decide if you will sell right now but to assess where you stand and what your real options are.

Related reading: Survival of the Fittest: Welcome to the Era of Smart Partnering

Selling your firm is likely the most significant financial transaction of your career. Our sell-side process is designed to protect your interests, maintain confidentiality, and position your firm to attract the right buyers at the right price. We focus equally on finding the proper cultural fit and negotiating you an exemplary financial outcome.

Here's how it typically unfolds:

• Prepare (1-2 months): We assess your goals, assess your top value drivers, and develop your transaction strategy. This includes producing your firm's confidential information memorandum (the CIM), which is the primary document buyers will use to evaluate your firm.

• Target (2-3 months): We build a curated list of typically 12-20 qualified buyers who are, generally speaking, well-capitalized, experienced in RIA acquisitions, and culturally aligned with your firm. We approach them confidentially on your behalf and manage buyer meetings and diligence discussions.

• Structure (2-3 months): We negotiate offers, optimize deal structure, and guide you to a signed letter of intent (LOI), the formal agreement that defines the key terms of your transaction.

• Close (1-2 months): We maintain the closing plan, coordinate with your legal and tax advisors, and advise on client communications up through final execution.

 The full process typically takes 6 to 9 months from start to close.

With more than 18 years of experience executing sell-side and buy-side transactions in the RIA industry, we maintain arms-length, respectful relationships with the C-Suites of all strategic acquirers as well as their corporate development teams.

ADP regularly meets with acquirers to stay up to date on their company culture, growth strategies, investment philosophies, career growth programs for employees, as well as partnership, compensation and equity models. In a sell-side engagement, we leverage this intel to put together the right buyer list for you.

Post-LOI, over 99% of our sell-side clients have closed their transactions. Our high close rate reflects the thorough preparation, strategic positioning, and disciplined process we bring to each engagement.

We work on a success-based fee model. Clients typically pay a modest upfront retainer, with most of our compensation tied to the successful closing of a transaction. Retainer fees are credited against the success fee, so you're not paying twice for the same work. Fee percentages vary based on transaction size, deal structure, and complexity, and are always aligned with your success.

From engagement to closing, most transactions take between 6 to 9 months, depending on firm readiness, complexity, and market conditions. Some engagements move faster, others may take longer if there are extenuating considerations.

Price gets you to the closing table. Culture determines whether you're happy you sold.

We don’t want our clients to be the seller who got a strong headline multiple number but found themselves unhappy 18 months later because the buyer's values, management style, or vision for the firm didn't align with theirs.

Before we bring any buyer to the table, we evaluate cultural alignment across several dimensions:

• Vision and growth strategy: Where is the buyer headed and does that path make sense for your clients and your team?

• Client philosophy: Do they serve similar clients with a compatible service model, or will your clients feel like they're being handed off to a different kind of firm?

• Investment approach: Are their strategies and platforms compatible with how you manage money today?

• People and career development: How do they treat advisors and staff? What happens to your team after the deal closes?

• Autonomy and integration: How much independence will you actually have post-close, and does that match what you want?

The right buyer isn't always the highest bidder. It's the one you and your clients will feel most comfortable with.

A good deal gets you the highest number. The right deal gets you the highest number from a buyer who will actually deliver, treat your clients well, and give you the multidimensional outcome you negotiated for.

No deal is perfect, but the right one passes three tests:

• Cultural alignment. You agree with the buyer's vision, client philosophy, investment approach, and how they develop talent. (See FAQ above.)

• Client confidence. You're genuinely excited to tell your clients what's coming next, not bracing for the conversation.

• Deal structure that fits your life. The mix of cash, equity, and earn-out works for you and your partners, and the overall terms are ones you're confident in, enabling you to sleep well at night.

Our job is to make sure the deal you sign is the one you're still glad you did 18 months later.

Absolutely. While many of our clients are exploring a sale or merger, we also advise firms that are looking to raise capital and/or acquire other firms.

The collaborative process begins by developing an acquisition thesis. We search for opportunities and bring the right partners to the table. As with sell-side engagements, we conduct all valuation and deal structure analysis, and we coordinate legal, tax and compliance resources to ensure buy-side transactions are completed correctly.

Confidentiality is a cornerstone of our process. We operate under strict NDAs and only share firm information with vetted, qualified parties after your approval. We use a secure virtual data room, and you stay in control of what’s shared, when, and with whom.