The Stebnicki Group, Inc.

In this sample transaction the numbers are rounded for simplified calculations.

The Private Client Group has four investors each investing $50,000. The target investment is $200,000 and the sale price is $324,000. The transactions costs (real estate commission, etc.) are estimated at approximately 7% of the sale price or $24,000. The net proceeds to the PCG are $300,000 which contain a net profit of $100,000. The PCG always returns the initial investment funds to the investors prior to calculating any profit split, therefore, each of the four investors has their $50,000 returned. The profit of $100,000 is split based on the ownership percentage in the PCG.

ACI owns 30% and each of the investors owns 17.5%. The profit of $100,000 is distributed as $30,000 to ACI and $17,500 to each of the four investors, thus returning a 35% return on their initial investment.

Purchase Price:	$200,000
Sale Price:	$324,000
Transaction Costs (±7%):	$24,000
Net Sale Proceeds:	$300,000

Return Initial Investments:	$200,000
Investor 1 (25%): $50,000
Investor 2 (25%): $50,000
Investor 3 (25%): $50,000
Investor 4 (25%): $50,000

Net Profit:	$100,000

Profit Distribution:	$100,000
ACI (30%): $30,000
Investor 1 (17.5%): $17,500
Investor 2 (17.5%): $17,500
Investor 3 (17.5%): $17,500
Investor 4 (17.5%): $17,500