Description of Desired Practice: Ideally, a Northern California practice where clients are accustomed to regular communication and advice that is in their best interest. This will complement our current practice that is very well systemized and has capacity to serve more families. Executive Summary: We have interest in purchasing more practices and have experience in doing so. If you are considering an eventual sale – or designing a succession plan – we’d enjoy speaking to you. More specifics can be found below. Ideal Practice Seller Could Be: • Advisor(s) looking to exit industry in the next 5 years. • Advisor interested in working less while our team takes care of the day-to-day operations. • Advisor interested in making sure their clients are cared for with prudent advice, expert service and fiduciary principles. • Advisor who is interested in working with an experienced buyer/team that understands the sensitive nature of transitioning precious client relationships and is willing to work with selling advisor to design appropriate financial terms that work for all parties. • It could be an internal Commonwealth advisor whose clients are already part of the Commonwealth family. Alternately, it could be an advisor from outside of Commonwealth that would like to see their clients at Commonwealth prior to retirement. If you know of any external Northern California advisors – who are thinking of retirement – we’d be grateful if you could pass along our interest in speaking to them. Thank you! Highlights of our Practice: • $675 million Total Assets; $537 million PPS Balances • New business is almost entirely PPS but we do have occasional LTC sales. • 5 advisors and 6 administrative team members who all care deeply about the client experience. All advisors have earned the CFP® designation • Proactive communication: reviews occur either quarterly, semi-annually, or annually depending on client preference and/or needs. • Regular group educational events where clients learn about investment principles, tax strategy, estate planning, behavioral finance, and other relevant subjects. • Our office is professional while not being uptight. We adopt a work-hard-play-hard philosophy, and we love to laugh! • We no longer market to the general public as referrals generate new business. This leaves us with more time to serve clients! Team-wide designations held: • 5 - CERTIFIED FINANCIAL PLANNER™ Professional (CFP®) • 1 - CHARTERED FINANCIAL ANALYST® (CFA®) • 1 - CHARTERED ALTERNATIVE INVESTMENT ANALYST® (CAIA®) • 2 - ACCREDITED INVESTMENT FIDUCIARY® (AIF®) • 1 - CHARTERED FINANCIAL CONSULTANT® (ChFC®) • 2 - RETIREMENT INCOME CERTIFIED PROFESSIONAL® (RICP®) • 1 - FINANCIAL PARAPLANNER QUALIFIED PROFESSIONAL™ (FPQP™) • 1 - BEHAVIORAL FINANCIAL ADVISOR (BFA™) • 1 - MASTER OF SCIENCE IN ADVANCED FINANCIAL PLANNING Our Succession Experience: • 2015–2017: Partial Purchases: Completed purchases of various amounts from same external seller who agreed to sell blocks of client assets which were geographically – and from a client need perspective – more sensible to be served by our office. Approximate total purchase is in the $30 million range and seller was paid as assets transferred over. • June 2019 Full Purchase: Completed purchase of a 65 household ($63 million) hybrid practice from outside B/D. Due to selling advisor health issues, he received 80% of payment on the date of his B/D change. The remaining 20% was paid when 80% of assets moved over; this took roughly 30 days. According to FP Transitions – who performed pre and post-transition analysis of this purchase – we achieved “reverse attrition” within a year as the clients added funds and referred friends which resulted in more assets than were purchased even after backing out market growth. We also absorbed 1 licensed advisor who is part of our team today! • June 2021 Full Purchase: Completed purchase of a 85 household ($60 million) hybrid practice from within Commonwealth. Selling advisor wanted to spread taxes out so we arranged a 25% down payment and escrowed 3 payments of 25% each occurring January of 2022, 2023, and 2024. The selling advisor was gracious enough to recommend that a couple of difficult clients be turned into house accounts. Thanks to Commonwealth, we achieved 100% retention of the clients we wanted to keep. • May 2022 Full Purchase w/ “Sell & Stay” outcome: Completed purchase of 125 household ($100 million) hybrid practice from within Commonwealth. The selling advisor desired a liquidity event but prefers to remain in industry with sole focus on client and prospect interaction. Now, the team handles all operational and administrative tasks which frees up time and reduces stress for selling advisor. Selling advisor preferred 50% down, and we escrowed 25% for payment in 2023 and escrowed remaining 25% for payment in 2024. Additionally, advisor will receive salary plus incentive for garnering new assets. General Comments: • We understand that: o You’ve worked hard to build relationships and letting go won’t be easy. It is likely that your clients are also your friends and family. We’d enjoy spending time with you to learn about your greatest concerns or anything that keeps you up at night! This way, we can develop a plan to reduce anxiety and maximize this experience for you and your clients. o You’ve established your own systems and methods which led to your success. We want to learn about your systems and methods so we can be sure clients remain comfortable throughout a transition and beyond. o Your clients will have mixed feelings. First, they will be sad to lose their trusted financial advisor – you! On the other hand, they will be excited and happy for you as you embark on a new chapter. o As relationships transition to us, we are mindful to honor the relationships that you began and we will carry your spirit with us. We regularly reference the names of previous advisors as we have future discussions. We want the clients to know that you provided great recommendations including who would take over for you. These clients will also see that we are committed to caring for them just as you have. After all, we don’t just make that commitment to each and every client, we make that same commitment to you! Visit us at www.tomrenwealth.com to learn more.