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CASE STUDY #1 - James Treadwell

Read how one RIA principal was able to streamline his one-man shop by implementing Omniscient’s simple to use platform.

James Treadwell was principal of XYX Investments RIA in Northern California. The advisory business was a second career for James after retiring as CFO of a large school district.

Since the establishment of his RIA in the early 90’s, James had been able to build his practice to a size of $35mm in AUM generating approximately $300,000 in annual client fee revenue. He ran a one person shop manually administering the practice and handling all the administration and compliance responsibilities himself. His intermediate term goal was to streamline and grow his business in order to maximize its value and then sell at the most attractive terms.

During his due diligence, he was referred to Omniscient. In his opinion, Omniscient’s Total Practice Management (TPM) platform met most of his requirements for the intermediate future of his RIA. A tailored TPM package for his practice handled middle and back office functions of his RIA. Within a two month period, James had successfully achieved several of his streamlining goals:

  • Automating his portfolio accounting
  • Producing performance reports for his clients
  • Automate billing
  • Delegate operational/administrative tasks
  • Update technology and systems
  • Delegate book keeping and payroll administration

James’ practice was conservatively valued at $450,000. He was now ready to grow the value of his practice. James calculated that the streamlining he was able to achieve by utilizing the Total Practice Management platform saved him approximately 15 hours per week. This time saving would allow James to turn his attention to growing his practice.

After two years on the Omniscient platform, James was able to grow his practice to $45mm in AUM generating approximately $360,000 in annual fee revenues. He was now ready to implement his succession plan and search for a firm to purchase his practice.

Because of the streamlining and automation supporting his business, James earned a valuation of 2.5 times the annual revenue of his practice or $900,000.

Omniscient’s platform empowered James to delegate almost all non-client related tasks and responsibilities and focus his time on improving his efficiency and acquiring new clients. In less than three years, James was able to grow his practice by 28% or $10mm in AUM and 20% in revenues resulting in a significantly improved bottom line and a premium multiple on the valuation of his practice. James improved the value of his practice by 100% or $450,000 by utilizing the power of the Total Practice Management platform and reinvesting the many hours he saved into improving and growing his practice.

Omniscient provides time and efficiency saving technology and support services to empower Advisors to focus on their clients and increase the value of their practices.