A good opportunity at a fair price.
A strong accelerant if we buy.
2,951
solopreneurs
$218M
AUM
$5M
target price
2,951 customers (2,592 cross sell eligible) holding $218M in AUM. 534 customers at 24+ months locked at 0% churn. AUM compounds from $54K avg annual deposits per existing account ($29K first year for new accounts) + 7% market returns.
BD/RIA license, SEC registration, SOC 2, AML compliance. All operational. A 2 to 3 year head start over building from scratch.
5 of 6
BD/RIA fees grow with AUM. Existing accounts contribute ~$54K/yr on average ($29K first year for new accounts), markets compound balances. No new sales effort required.
Average account balance is ~$50K, Y2+ contribution rate ($54K) is nearly 2x the first year rate ($29K). Retirement money stays on the platform for decades.
Only provider accepting Solo 401k apps after Dec 22. 355 zero CAC lock ins per year: $932K/3yr revenue, $2.1M to $2.9M EV per cohort.
How Carry Strengthens Lettuce
No one else offers S Corp + tax + banking + bookkeeping + healthcare + retirement in one place.
Moving a 401k is painful. Once retirement is on the platform, customers stay.
Retirement + tax + income data gives the most complete picture of a solopreneur’s finances.
Tell a customer in November to put $X into Solo 401k before Dec 31 to save $Y in taxes.
Offer Carry customers an opt in $99/mo promo for Y1 on Lettuce Complete (Pro + 401k). No forced migration. Upgrade bundle pricing to $349/mo post acquisition for all other customers.
Dec Rush Revenue
$932K/3yr
355 lock ins per cohort
Cross Sell Window
12 mo
no forced migration
Blended Monthly Churn
~2.8%
vs 4.2% Carry standalone
$9.81M
2yr rev
Price Sensitivity Analysis
Multi-tier churn: 8% bundle, 0% for 24+ month (534 locked), 40% standalone, 10% Lettuce Pro. 355 Dec lock ins. Not counting new growth.
Price Sensitivity Analysis
Complete pricing kicks in Y2. 534 customers locked at 0% churn. Bundle customers at 8% churn. Standalone at 40%. Not counting new growth.
Price Sensitivity Analysis
Baseline 2yr: $5.89M. Multi-tier churn model. Y2 surges as Complete pricing kicks in. Not counting new growth.
Our Valuation
$3.8M to $5.7M
2,951 customers · $218M AUM · BD/RIA licensed
Advisory Fee Assumption
50% advisory retention assumed on ~491 currently paying accounts (~$15K/yr). $0 from 2,527 grandfathered accounts until we understand AUM robo managed vs. self directed distribution and post June 2025 cohort's Jan 2027 churn behavior.
~16
months
~16
months
Revenue exceeds cost within 16 months at midpoint.
Year 3 Enterprise Value Add
$43M to $57M
Year 3 revenue of $7.10M at a 6 to 8x multiple. Revenue from the acquisition grows as AUM based BD/RIA fees compound (rate adjusted for projected Fed cuts) while subscription revenue normalizes post Complete pricing.
Cost
$4.7M
Yr 3 Rev
$7.1M
Value Add
$43 to $57M
Cost
$4.7M
Yr 3 Rev
$7.1M
Value Add
$43 to $57M
Full cost breakdown and valuation model in Diligence.
If They Buy
If We Buy
Competitive Landscape
14
companies mapped
3 credible / 11 weak fit
$150M raised
Same market. No retirement product. Acquiring Carry closes a critical gap.
$3B AUM
Already runs Solo 401k. Gains BD/RIA license and 2,951 funded members.
$1.7B AUM
Direct Carry competitor today. SEC registered RIA with existing Solo 401k infrastructure.
Full threat matrix with all 14 companies in Diligence.
DW must approve change of control. No consent, no deal. Engage before LOI.
Fees jump 15 to 35bps Jan 2027. Tie earnout to post cliff retention.
MRR declining 3 months. Lower rates pressure BD/RIA revenue (interest income). Value on AUM, not SaaS.
SEC exam open, no findings. Solo 401k rule changes could raise costs. Escrow 10 to 15%.
Another integration alongside healthcare. CCO needed on staff ($238K). Lean 5 person team ($883K/yr). CCO needed on staff ($238K).
Manageable risk profile with substantial upside.