Independent Sponsor Employment & Non-Compete Agreements in Wealth Advisors & RIAs
Independent sponsor counsel for wealth advisors and RIAs, focused on Employment & Non-Compete Agreements and the deal mechanics that protect sponsor economics and LP alignment.
An independent sponsor closing wealth advisors and RIAs transactions in the $10M to $180M EV range has a defined set of moves at the Employment & Non-Compete Agreements stage. Most of them are not in a generic M&A textbook.
The typical wealth advisors and RIAs platform sits at $10M to $180M EV with EBITDA in the $3M to $25M range. The thesis runs on RIA aggregation or wealth platform roll-up. Client consent process is the longest pole. Start it the day after the LOI signs.
How Employment & Non-Compete Agreements actually gets structured.
Negotiate seller non-competes to the maximum enforceable scope, by state law.
Refresh key employee restrictive covenants pre-close, where possible.
Address the FTC non-compete rule and its state-by-state aftermath.
Tie executive non-competes to retention bonus economics that survive a quick exit.
In wealth advisors and RIAs, layer in negative consent process timed with regulators as part of the Employment & Non-Compete Agreements workstream.
Drafting a national-scope non-compete in California. Enforceability is a binary, not a spectrum.
"A non-compete is only as strong as the state it sits in. Draft for the state, not the deal."Jason Powell · Employment & Non-Compete Agreements
The deal is one thing. The capital that opens up after close is another.
The capital that opens up post-close, from refinancing to growth equity to strategic exit, runs through a small set of Wall Street relationships. That network is built in.
Related deal pages.
Independent Sponsor Economics for Wealth Advisors & RIAs
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Management Fee Structuring for Wealth Advisors & RIAs
The annual fee paid by the deal entity to the independent sponsor for ongoing oversight, board service, and p…
Transaction Fee Structuring for Wealth Advisors & RIAs
The fee paid at closing to the independent sponsor for sourcing, structuring, and closing the platform deal a…
Working Capital Adjustments for Wealth Advisors & RIAs
The closing-date true-up that protects the buyer from receiving a business stripped of normal-course working …
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An LOI on the desk, a wealth advisors and RIAs target, and a Employment & Non-Compete Agreements question worth a real conversation.
Twenty minutes of practitioner-grade input from a securities attorney whose first move is to read the deal, not the engagement letter.