Financial Planning Practice Valuation

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.