Clark’s goal was to maximize business value and simplify operations before transitioning out of ownership.
When Clark was ready to exit after years of building his business, we uncovered major operational inefficiencies and a lack of alignment among the firm’s various acquired practices. Through a structured, industry-benchmarked transformation—buying out incomplete partnerships, redesigning compensation, implementing best-in-class technology, and aligning culture—Clark’s firm saw significant profit margin growth, unified ownership, and a client experience overhaul. Within two years, these changes more than tripled the firm’s value and positioned it for a highly attractive sale.
Client
Clark
Business
Wealth Management / Professional Services
Time Period
2 years
Results
Clark’s firm tripled in value and achieved a premium sale following comprehensive restructuring and alignment.
Transformation Before Transition: Clark’s Journey to a Premium Exit
Clark Johnson had built a reputable wealth management practice in Denver, acquiring several smaller firms over the years and growing his client base. But by the time he reached out to Your Legacy Partners in 2018, he was exhausted. Margins were thin, and operational complexity made each day a grind. The firm—while outwardly successful—was riddled with inefficiencies, disconnected ownership interests, and a fragmented client experience.
Instead of immediately pushing for a sale, we took a step back to understand Clark’s true goals and the hidden value in his business. Our first task was to examine the firm’s core offerings, values, and industry position. We then benchmarked best practices in wealth management, assessing options for restructuring that made sense for Clark’s unique situation.
A key priority was unifying ownership. We facilitated the buyout of incomplete partnerships and lingering affiliations so that everyone operated under a single, cohesive entity. This consolidation simplified decision-making and created a platform for scalable growth.
Next, we turned our attention to compensation and incentives. We designed a new structure—pairing fair base salaries with incentive compensation tightly aligned to the metrics that mattered most for future growth. This ensured that both legacy and newer partners were motivated and appropriately rewarded for their contributions.
We also addressed technology and operational processes. By implementing robust industry tools for tracking, reporting, and client management, the firm enhanced both efficiency and consistency—enabling all advisors to deliver a premium, unified client experience.
Over 18 months, the transformation was profound. Owners now held equity commensurate with their contributions; staff felt valued and motivated; the client experience was cohesive and marketable; and, most importantly, profit margins rose steadily, finally nearing industry averages. The firm’s intangible capital—culture, alignment, and systems—became a major asset.
Two years later, when Clark and the team brought the firm to market, buyers saw a well-oiled, growth-ready business. The value of the firm had more than tripled, due to not only expanded EBITDA margins but also the enhanced intangible capital and operational sophistication.
Clark’s journey shows that sometimes the best exit isn’t the fastest one. By pausing to enhance the underlying business, he didn’t just secure a higher sale price—he left behind a legacy of alignment, excellence, and opportunity for everyone who helped build the firm.
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Legacy grows strongest when people come first.
Nick Arellano
Legacy Partner
