Prime Financial Group (PFG) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition expands wealth solutions and distribution, adding 3,300 high-net-worth investors, a 10x increase in this segment.

• Aligns with a long-term strategy to double revenue and expand service offerings, especially for high-net-worth and self-directed investors.

• Both businesses share a client-centric, connected advice philosophy, making the integration highly complementary.

• Provides additional research, managed solutions, and tools for intergenerational wealth needs.

• Represents the fourth acquisition in 2.5 years, marking a significant step up in size.

Financial terms and conditions

• Total consideration is $15.75M for future on-target EBITDA, potentially rising to $17.9M if earnings targets are exceeded, paid in four tranches.

• Purchase price represents a 3.4–4.5x multiple of future on-target EBITDA.

• Consideration is approximately 80% cash and 20% shares, with $4M paid upfront and payments over three years.

• Funded via operating cashflow, debt facilities, and cash reserves.

• Founder Tim Lincoln will become a shareholder in the combined group.

Synergies and expected cost savings

• Majority of revenue is recurring, with an expected pre-synergy EBITDA margin of 15–20%.

• Significant cross-sell opportunities and scale efficiencies anticipated.

• Cost synergies include co-location, shared services, and elimination of duplicate functions.

• Investment in IT, infrastructure, and team to drive further efficiencies and margin uplift.

• Targeting EBITDA margin of 25–30% within 12–18 months post-integration.