Advisory Practice Valuations

A reference point into the value of your practice.

About Advisor Valuations


Advisor Valuations is a leading national consulting firm for financial advisors and wealth managers, providing valuations to assist in the assessment and sales of financial advisory practices. The Valuation Reports provided by Advisor Valuations offer business owners reference points and transparency into the value of their business, ultimately resulting in strategic, data-driven decisions.

Scott Brittman is the founder of Advisor Valuations and Director of Operations for Advisor Successions, which was founded in 2012 and has seen tremendous growth since its inception, mainly due to acquisitions. Between Mr. Brittman’s current entrepreneurial enterprises, he’s participated in hundreds of purchases of financial advisory practices, overseeing the transition of billions of dollars in AUM.

When pairing Advisor Valuations services with those of Advisor Successions, financial professionals have all of the necessary tools to successfully grow, merge, and sell their businesses.

Through this partnership with Advisor Successions we are able to help financial advisors grow through acquisition, protect their business with a succession plan, and manage the transition of their business through the right connection and service.

Whether you are planning on buying or selling a business, or you want to create a death and disability plan, market estimates are a great resource for advisors that are curious about the value of their business for planning purposes.

Whether you plan to transfer your practice to a partner, family members, employees, or a third party it is important to understand the value of the company. Regardless of who is most likely to be the successor, it is important to know how and why that value can be different for each of the parties. Advisor Successions helps connect sellers across the country with prequalified buyers. This proven process helps to reduce the headache of finding the right successor, thus removing the guesswork. Having a written valuation significantly helps the process in identifying a successor.

Valuation Overview


Business Valuations are beneficial for a variety of reasons
  • Determining the value of a business for present or future sale
  • Succession planning
  • Updating/Creating death and disability plans for your business
  • Implementing equity compensation strategies with key staff
  • Obtaining larger business lines of credit
  • Eliminating partnership disputes
  • Gaining more insight into your financial condition
  • Identifying key value drivers to increase business value

The goal of this Valuation Report is to help you determine the price that your practice would sell for on the open market. While many factors exist to determine the value of a business, Advisor Valuations considers your assets under management, last 12 month revenue, last 12 month assets acquired, annual expenses, years until retirement, client age and margin analysis. This hybrid approach combines valuation techniques from the asset, market and income methods.

While factual data is used, the strength and quality of client relationships and the transferability of those relationships help measure the future cash flow of the business. Another key component is the value of similar practices that have been sold in the marketplace.

Your client age demographics and their generational planning are important factors that help evaluate the risk of your practice, as the less risk associated with transitioning clients to the buyer, the higher the business value.

Since revenue is a primary component in the valuation of the business, identifying recurring and transactional-based revenue is very important. Transactional revenue (non-recurring) is generally earned from one-time transactions for a commission payment. Recurring gross dealer concessions (ongoing revenue) is made from fee-based investments, which are charged as an asset fee or percentage of AUM.

Choosing the proper deal structure is a critical decision to make when selling your business, sometimes more important than the actual sale price of your practice. The proper deal structure can minimize risk to both the buyer (i.e. clients leaving the practice) and seller (i.e. seller defaulting on note). This report contains several available deal structures to consider, taking tax implications and the aforementioned factors into consideration.

Pricing

All inclusive prices covers a full report

What is included in the report?

  • Practice Profile Analysis
  • Practice Trends Evaluation
  • Different Deal Structures
       - Bank Financing
       - 5 Year Seller Owned Note
       - Earn Out
  • Tax Considerations
Valuation Report
$750