Just when you thought there wasn’t anything left to consult on, the RIA industry has a new Consulting firm.
We caught up to the founder of riaCapitalSolutions & contributing author at The Wall St Times, Jeff Bischoff, and asked him to explain what niche his new business is going to be filling.
TWST: What inspired you to launch riaCS?
Bischoff: “We recognized a need in the RIA start-up business that simply wasn’t being filled. There are some great companies doing great things in the breakaway space and yet there is a tremendous gap that nobody has solved for. That gap is friendly, affordable capital and unbiased capital advice. In addition, the breakaway industry is really only about ten years old, so in many ways it still has a Wild Wild West mentality in terms of pricing and servicing transparency. We are going to be filling this gap and delivering transparency by unbundling the bundle.”
TWST: Doesn’t Live Oak Bank provide teams with capital?
Bischoff: “Yes. Live Oak Bank is a great company. We like them and have a relationship with them. We may also use them if their rates and terms better suit a particular client’s needs.”
TWST: What else do you do?
Bischoff: “We aren’t going to lay out our entire business model in this interview, but let me just summarize it by saying: We deliver cash flow modeling with multiple variable inputs that generates an Enterprise Valuation Report. We deliver capital solutions, but more importantly, we deliver capital advice and expertise”.
TWST: Don’t other firms do this?
Bischoff: “Not under one roof, and not in the way we approach the opportunity for the breakaway team. We Start with the P&L math. If the risk/reward of an RIA launch is not attractive for the team, we will thank them for not wasting our resource partners’ time building a house they never plan on moving into.”
TWST: What about The Wall Street Times? Why did you guys start a newspaper?
Bischoff: “Again, we saw a need, we filled the gap. The RIA industry needs a place to go to learn about deal terms for different Done Deals. Unless the information is “sealed” we will report on the different mergers and acquisitions in the RIA space. Our M&A bankers have done some of the industry’s top deals and when they aren’t bound by an NDA, or privy to the actual deal terms, they will help us report on pertinent deal components. (EBITDA, revenue, multiples, cash, consideration,etc). The newspaper will also serve as a platform for general industry news, with some op-editorials, all from an M&A perspective.”
Bischoff: “I will tell our prospective clients: our M&A bankers are YOUR M&A bankers. Nobody else is doing what we are doing. We are delivering transparency to the pro formas in order to deliver capital solutions that mitigate the inherent risk and opportunity cost, related to an RIA launch.”
TWST: Who are the people behind riaCapitalSolutions?
Bischoff: “We are a collection of industry professionals ranging from two of the RIA industry’s top M&A banking names, to two of the RIA industry’s top lawyers. Some of our people and companies are featured on the riaCS site, however, some are only participating in NDA-protected venues”.