| Profit / Loss Statement | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|
| 1. INCOME | |||||
| Advisory Fee AUM | $1,000,000,000.00 | $1,000,000,000.00 | $1,060,000,000.00 | $1,388,600,000.00 | $1,471,916,000.00 |
| Acquired Advisory Fee AUM | - | - | $250,000,000.00 | - | $250,000,000.00 |
| Management Fee Revenue (60 bps) | $6,000,000.00 | $6,000,000.00 | $6,360,000.00 | $8,331,600.00 | $8,831,496.00 |
| Commission Based Revenue ($500k / 80% Payout) | $400,000.00 | $400,000.00 | $400,000.00 | $400,000.00 | $400,000.00 |
| 6% YOY Growth Of Business AUM | - | $60,000,000.00 | $78,600,000.00 | $83,316,000.00 | $103,314,960.00 |
| Tuck In Business (New Revenue $2Mill x 75%) | - | - | $1,500,000.00 | - | $1,500,000.00 |
| TOTAL REVENUE | $6,400,000.00 | $6,400,000.00 | $8,260,000.00 | $8,731,600.00 | $10,731,496.00 |
| 2. EMPLOYEE COSTS | |||||
| Admin Wages & Salaries (4 head count) | $300,000.00 | $309,000.00 | $318,000.00 | $327,000.00 | $336,000.00 |
| CAO Salary | - | $100,000.00 | $103,000.00 | $106,000.00 | $109,000.00 |
| Acquisition Staffing (+2 yr 3 / +2 yr 5) | - | - | $130,000.00 | $130,000.00 | $260,000.00 |
| Payroll Expenses:Payroll Processing | $1,800.00 | $1,854.00 | $1,908.00 | $1,962.00 | $2,016.00 |
| Payroll Expenses:Payroll Tax Expense (9.15%) | $27,450.00 | $37,423.50 | $50,416.50 | $51,514.50 | $64,507.50 |
| Employee Health Insurance (employee only) | $41,520.00 | $51,900.00 | $72,660.00 | $72,660.00 | $93,420.00 |
| Partners' Health Insurance (2 partners / +1 yr 3 / +1 yr 5) | $32,520.00 | $32,520.00 | $48,780.00 | $48,780.00 | $65,040.00 |
| Workers Compensation (est) | $3,600.00 | $4,600.00 | $6,100.00 | $6,280.00 | $7,780.00 |
| TOTAL EMPLOYEE COSTS | $406,890.00 | $537,297.50 | $730,864.50 | $744,196.50 | $937,763.50 |
| Percent of Total Revenue | 6.36% | 8.40% | 8.85% | 8.52% | 8.74% |
| 3. BUSINESS EXPENSES (Highly variable & discretionary) | |||||
| Business Development & Marketing | $30,000.00 | $10,000.00 | $20,000.00 | $10,000.00 | $20,000.00 |
| Equipment Lease & Maintenance | $6,000.00 | $6,120.00 | $6,240.00 | $6,360.00 | $6,480.00 |
| Registration & Regulatory Fees | $8,000.00 | $8,160.00 | $9,323.20 | $9,509.66 | $10,699.86 |
| Licensing & Brokerage Fees | $5,000.00 | $5,100.00 | $6,202.00 | $6,326.04 | $7,452.56 |
| Insurance Expense:E&O | $25,000.00 | $25,500.00 | $30,000.00 | $30,600.00 | $35,600.00 |
| Insurance Key Man Life (transition year only) | $4,000.00 | $4,080.00 | $8,000.00 | $8,160.00 | $16,160.00 |
| Insurance Business Liability | $1,600.00 | $1,632.00 | $2,164.64 | $2,207.93 | $2,752.09 |
| Misc. Taxes & Licenses | $2,000.00 | $2,040.00 | $3,080.80 | $3,142.42 | $4,205.26 |
| Travel & Lodging | $35,000.00 | $35,700.00 | $42,840.00 | $42,840.00 | $47,124.00 |
| Meals & Entertainment | $30,000.00 | $30,600.00 | $36,720.00 | $36,720.00 | $40,392.00 |
| Office Expenses (Supplies & Postage) | $10,000.00 | $10,200.00 | $11,404.00 | $11,632.08 | $12,864.72 |
| Rent Expense | $195,000.00 | $180,000.00 | $252,000.00 | $252,000.00 | $252,000.00 |
| Telephone, TV & Internet | $6,000.00 | $6,370.00 | $6,997.40 | $7,137.35 | $7,780.09 |
| Contingency 3.5% of Revenue | $224,000.00 | $224,000.00 | $289,100.00 | $305,606.00 | $375,602.36 |
| TOTAL BUSINESS EXPENSES | $581,600.00 | $549,502.00 | $724,072.04 | $732,241.48 | $839,112.95 |
| Percent of Total Revenue | 9.09% | 8.59% | 8.77% | 8.39% | 7.82% |
| Profit / Loss or Earnings Before Professional Services | $5,411,510.00 | $5,313,200.50 | $6,805,063.46 | $7,255,162.02 | $8,954,619.55 |
| 4. PROFESSIONAL SERVICES | |||||
| Professional Services Accounting | |||||
| Professional Services Legal | |||||
| Platform Fee | |||||
| Platform Tech & Consulting (negotiated) | |||||
| M&A Advisory / Valuation Services | |||||
| Custody (negotiated) | |||||
| Manager Research | |||||
| Client Reporting | |||||
| TOTAL PROFESSIONAL / PLATFORM SERVICES | $900,000.00 | $900,000.00 | $1,200,000.00 | $1,200,000.00 | $1,300,000.00 |
| ***Professional Services (costs range from 10% to 18% depending on business model) | |||||
| Percent of Total Revenue | 14.06% | 14.06% | 14.53% | 13.74% | 12.11% |
| Profit / Loss or Earnings Before Partners Compensation (EBPC) | $4,511,510.00 | $4,413,200.50 | $5,605,063.46 | $6,055,162.02 | $7,654,619.55 |
| Percent of Total Revenue | 70.49% | 68.96% | 67.86% | 69.35% | 71.33% |
| Debt Capital ($5,000,000 @ 5% INTEREST ONLY) | $250,000.00 | $250,000.00 | $250,000.00 | $250,000.00 | $250,000.00 |
| Acquisition Capital (5% INTEREST ONLY) | - | - | $50,000.00 | $50,000.00 | $100,000.00 |
| Profit / Loss or Earnings After Debt Capital Interest | $4,261,510.00 | $4,163,200.50 | $5,305,063.46 | $5,755,162.02 | $7,304,619.55 |
| Percent of Total Revenue | 66.59% | 65.05% | 64.23% | 65.91% | 68.07% |
| 5. ENTERPRISE VALUATION REPORT | |||||
| 4x Ebitda | $18,046,040.00 | $17,652,802.00 | $22,420,253.84 | $24,220,648.08 | $30,618,478.20 |
| Start Up Loan | $(5,000,000.00) | $(5,000,000.00) | $(5,000,000.00) | $(5,000,000.00) | $(5,000,000.00) |
| Business Acquisition Financing (5% Interest Only) | - | - | $(1,000,000.00) | $(1,000,000.00) | $(2,000,000.00) |
| Acquired partners at $3million equity each, plus growth | - | - | $(3,000,000.00) | $(3,360,000.00) | $(6,763,200.00) |
| Founding partners' equity at 4x | $13,046,040.00 | $12,652,802.00 | $13,420,253.84 | $14,860,648.08 | $16,855,278.20 |
| 6x Ebitda | $27,069,060.00 | $26,479,203.00 | $33,630,380.76 | $36,330,972.12 | $45,927,717.30 |
| Start Up Loan | $(5,000,000.00) | $(5,000,000.00) | $(5,000,000.00) | $(5,000,000.00) | $(5,000,000.00) |
| Business Acquisition Financing (5% Interest Only) | - | - | $(1,000,000.00) | $(1,000,000.00) | $(2,000,000.00) |
| Acquired partners at $3million equity each, plus growth | - | - | $(3,000,000.00) | $(3,360,000.00) | $(6,763,200.00) |
| Founding partners' equity at 6x | $22,069,060.00 | $21,479,203.00 | $24,630,380.76 | $26,970,972.12 | $32,164,517.30 |
| 8x Ebitda | $36,092,080.00 | $35,305,604.00 | $44,840,507.68 | $48,441,296.15 | $61,236,956.40 |
| Start Up Loan | $(5,000,000.00) | $(5,000,000.00) | $(5,000,000.00) | $(5,000,000.00) | $(5,000,000.00) |
| Business Acquisition Financing (5% Interest Only) | - | - | $(1,000,000.00) | $(1,000,000.00) | $(2,000,000.00) |
| Acquired partners at $3million equity each, plus growth | - | - | $(3,000,000.00) | $(3,360,000.00) | $(6,763,200.00) |
| Founding partners' equity at 8x | $31,092,080.00 | $30,305,604.00 | $35,840,507.68 | $39,081,296.15 | $47,473,756.40 |