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Financial Planning Practice Valuation |
Financial Planning Practice Valuation
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All financial advisors should periodically
conduct a financial planning practice valuation to determine the
value of their financial planning practice. 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
practice, 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 planning practice is worth.
As a proactive M&A firm, adviserXchange can
assist clients with a financial planning practice valuation. And,
while we don't provide formal valuations ourselves, we couldn't
offer M&A services to advisors without staying abreast of the market
values of financial planning practices that are sold. To that end,
we can usually help you determine an informal range of value for
your practice 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 Planning Practice Valuation Can Help You Assess All Your Sales Options Through AdviserXchange
There are different methods available for obtaining a financial planning
practice valuation. For example, small to mid-sized practices are typically
valued on a multiple of revenue, whereas larger practices are usually valued on a
discounted cash flow approach. These numbers and their corresponding values
may be further adjusted up or down based upon factors such as client
demographics and future growth expectations. The ideal outcome of this
process is to derive a range of value for the practice in order to help you
make an informed decision with your sale.
A financial planning practice valuation is only one factor in selling a financial
planning practice through adviserXchange. To the greatest extent possible,
buyers and sellers should also be compatible to help ensure a successful
transition of the practice over the long term. Once a match has been
established, we then work with you to help ensure a smooth and efficient
closing. Give us a call today so we can help you determine the value of your
practice and successfully transition it to the
optimum buyer.
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