Balancing Act | Exploring Value and Terms in Deals (Ep. 24)

In this episode of The Fine Print, David Grau Jr., President of Succession Resource Group, unpacks the critical—yet often overlooked—relationship between valuation and deal terms in today’s advisor M&A landscape. Building on previous discussions around private equity and industry aggregators, David dives into the real mechanics of how deals are financed, structured, and negotiated.

From historical norms of “one-third cash, one-third note, one-third earnout” to today’s increasingly creative term sheets boasting eye-popping valuations, this episode sheds light on how sellers can command higher prices, if they’re willing to take on more risk. David outlines the modern deal menu, including bank financing, stock-based compensation, clawback provisions, and performance-based earnouts, and explains how each option shifts risk between buyer and seller.

Whether you’re planning an internal succession, preparing for an external sale, or fielding offers from aggregators, this episode will help you understand the trade-offs that impact the final outcome. Tune in to learn why it’s no longer just about the headline valuation, but how you get paid that makes all the difference.

Key themes:

• Creative deal structures vs. traditional models
• How risk allocation influences valuation
• The rise of stock-based offers and performance contingencies
• When “highest price” doesn’t mean “best deal”

Get ready to cut through the noise and examine the real fine print.