Business Partnership Modeling

Obstacle:

Lead financial advisors were unable to bring on junior team partners effectively resulting in partnership formation delays or stagnating careers of the junior teammate. There was no oversight of partnerships which resulted in inconsistent, hastily organized, and ultimately failed internal ventures.

Solution:

Developed an easy-to-use, dynamic, pro forma model which introduced a new concept of floated equity. This allows a junior partner to shift to a compensation arrangement mimicking ownership until cash flow enables vesting via internal loans executed in tranches. The model is a key tool in pursuing alignment and terms. Introduced oversight including a required pre-partnership program which sets up the potential partners for success. Currently developing an entire pre-partnership program to optimize potential for success.