Wealth ManagementFree Financial Model Download

A wealth-management model captures the operating economics and equity return of a mid-size Registered Investment Advisor (RIA) from the perspective of the firm's owner over a seven-year hold. The workbook runs across eleven sheets — Cover, Assumptions, AUM_Rollforward, Revenue, Headcount, Expenses, Income_Statement, Cash_Flow, Valuation, Sensitivity, Checks — plus the shared Disclaimer. Every input is a named-range cell, every formula is one or two operations long, and the workbook passes static-value, self-reference, dead-assumption, and unused-named-range scans.

The AUM_Rollforward sheet is the revenue engine. Opening assets under management equal the prior year's close; gross inflows are a percentage of opening AUM (new household assets), attrition outflows are a negative percentage, and net flows are their sum. Market appreciation applies the market return to the opening balance plus half of net flows on a mid-period convention. Closing AUM equals opening plus net flows plus appreciation, and average AUM — the open/close mean — drives fee revenue.

The Revenue sheet starts the advisory fee rate at 85 bps and compresses it by a small relative percentage each year. Advisory fee revenue equals average AUM times that rate; financial planning fees equal client households times an annual per-household fee with the household count growing each year; other revenue is a percentage of advisory revenue. The Headcount sheet derives advisor count as closing AUM divided by a target book size per advisor, and support staff scale off advisor count, so the cost base grows with the firm.

The Expenses sheet builds the cost base: advisor compensation as a payout share of advisory fees, support compensation as benefit-loaded headcount cost, platform and custody fees as basis points on average AUM, plus technology, occupancy, marketing, compliance and G&A. The Income_Statement walks revenue less total opex to EBITDA, less D&A to EBIT, and — with no debt — taxes positive EBIT to net income. The base case lands at roughly a 25% EBITDA margin. The Cash_Flow sheet builds free cash flow (net income plus D&A, less the change in net working capital, less capex), pays the positive part as owner distributions, and rolls the cash balance forward.

The Valuation sheet triangulates three lenses: an entry enterprise value on Year-0 EBITDA at a 10x multiple, a discounted cash flow (PV of seven years of free cash flow plus a Gordon-growth terminal value), and an exit enterprise value on Year-7 EBITDA at a 12x multiple. The owner cash-flow stream — a Year-0 outflow of the entry equity value, annual distributions, and a Year-7 distribution plus exit equity value — yields an equity IRR of roughly 21% and a money multiple near 3.3x. The Sensitivity sheet flexes a 5x5 grid of exit enterprise value against net flow rate and market return, and the Checks sheet runs nine validation checks against named-range bounds.

Target users are RIA owners, wealth-management M&A and corporate-development teams, private-equity aggregators consolidating the sector, and bankers advising on advisory-firm transactions. Useful for acquisition underwriting (does a book of AUM clear the owner's return hurdle), fee-compression stress testing (what a softening fee environment costs margin and exit value), and organic-growth planning (how a net-new-asset target translates into advisor headcount and EBITDA). Calibrate against Schwab and Fidelity RIA benchmarking studies, Echelon Partners RIA M&A deal reports, and DeVoe & Company valuation surveys.