Financial Business Valuation

All financial advisors should periodically conduct a financial business valuation to determine the value of their financial advisory business. This information becomes especially important when an advisor is getting ready to evaluate potential sale, exit and/or succession options. If you’re at that point with your business, your shrewdness as a veteran advisor should lead you toward an outside mergers and acquisitions (M&A) firm who’ll help you determine what your financial business is worth.

As a proactive M&A firm, adviserXchange can assist clients with a financial business valuation. And, while we don’t provide formal valuations ourselves, we couldn’t offer M&A services to financial advisors without staying abreast of the market values of financial businesses that are sold. To that end, we can usually help you determine an informal range of value for your business with only limited information being provided to us. Formal third-party evaluations can also be arranged once a decision is made to move forward with our services.

A Financial Business Valuation Can Help You Assess Your Sales Options Through AdviserXchange

There are different methods available for obtaining a financial business valuation. For example, small to mid-sized businesses often sell on a multiple of revenue, whereas larger businesses are often valued on a multiple of the firm’s net operating income. These numbers and their corresponding values may be further adjusted up or down based upon factors such as extraordinary expenses and future growth expectations. The ideal outcome of this process is to derive a range of value for the business in order to help you make an informed decision with your sale.

A financial business valuation is only one factor in buying or selling a financial business through adviserXchange. To the greatest extent possible, buyers and sellers should also be compatible to help ensure a successful transition of the business over the long term. Once a match has been established, we then work with the parties to help ensure a smooth and efficient closing. Give us a call today so we can help you determine the value of your business and successfully transition it to the optimum buyer.