What Is Your Financial Planning Practice Really Worth?

 

financial planning business for sale

Radar Results’ buying service is highly confidential, allowing for the acquisition to be completed without ‘outside’ competition. If you want to buy a financial planning business, accounting practice or mortgage business, we can help. There are number of financial advisor businesses for sale on a regular basis. If you're looking for a financial planning business that might be for sale, consider something in the Investment banking industry – it brings in about $ billion a year. courya.tk is the world's most popular website for buying or selling a business. Established in , the website is an international marketplace of businesses for sale. We provide a cost-effective route to market for business owners and their representatives and a one stop shop for aspiring entrepreneurs and business buyers.


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Takeaway: This article will help you understand the best way to value your business so you can better plan for succession. Articles on succession planning may have prompted you to think about selling your own financial planning practice and wondering what price you would get. As both a business consultant and a former acquirer of financial planning practices, I can tell you that your practice is very likely worth less than you think it is.

It is important that you understand this because if you want your succession to get implemented, you are going to need to adjust your expectations. The challenge is in setting up a deal that can be funded, financial planning business for sale. The commonly cited valuation multiples for financial planning practices of 1. Revenues have dropped, but expenses have not; clients have more choices, competition is greater and market projections are flat.

This valuation ignores the quality of the revenues being generated. It can be argued that profit earned under the existing owner might not take into account the future potential of the acquired assets or the cost savings of the existing owner leaving the practice, financial planning business for sale most owners do not leave immediately. Available free cash flow might not be sufficient to handle the debt repayments at this valuation level.

It can be seen that the deal is negative coming out of the gate. The industry average multiples for valuation ignore the higher rates of attrition that commonly affect transactions involving two BDs. Several industry reports suggest that a debt-funded sale is simple and beneficial. What they fail to point out is the risk of something going wrong. When it does go wrong, it goes quickly and sometimes catastrophically.

The cash flow issues are obvious, but profitability is also affected by challenges to morale, organizational stability and service models. Its value is directly correlated to its future cash flow. Future cash financial planning business for sale the single benefit you are offering to a buyer. They do the math and recognize they cannot buy a practice that is priced above a point where cash flow will service the debt.

If the debt cannot be paid because the firm bankrupts itself, the outcome benefits neither the seller nor the buyer. The last thing clients want is to be involved with a firm where the senior parties are in court!

Financial planning business for sale is better to value a practice on its predictable cash flow, add a shared benefit bonus for the seller if the firm does well under new management, and enjoy a successful succession.

Buying practices and assets is a proven method for developing a financial services firm and it serves the industry well. Being realistic, rather than optimistic, financial planning business for sale, about the value of our practices benefits all parties involved in the transaction. We have to recognize that our valuation models should be based on realize-able cash flow, not simply notional historical multiples. Toggle navigation Menu. Allen Duck November 30, Valuation of Financial Planning Practices The commonly cited valuation multiples for financial planning practices of 1.

Written by Allen Duck. His business transition skills include: business analysis, efficiency improvement, implementation of business continuity plans, deal structure and negotiation. Allen is a partner in Eighty20 Advisers LLC, an advisory firm providing practice management insights, valuation and succession execution guidance to financial services firms. Full Bio, financial planning business for sale.

Related Articles. Value is in the Eye of the Beholder. Related Terms. Is doing an exit plan worth my time and money? Is a formal business valuation needed for exit planning? How do I transfer my business to my children? More of your questions answered by our Experts.

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Businesses For Sale | Forte Asset Solutions

 

financial planning business for sale

 

HNW Financial Planning Business in Sydney. Sydney NSW, Australia. Available. Approx 50 HNW clients/families (multiple entities) 97 Financial Planning clients $m plus of recurring revenue Adjusted EBIT $, $80m plus Funds Under Management. LATEST BUSINESSES FOR SALE Financial Planning Business HNW Financial Planning Business in. Financial, Accounting, Insurance Businesses For Sale: Own a National Lending and Financial Services Business. courya.tk Req: $20, Serious Inquiries Only: We are only accepting individuals who must have the minimum capital investment of $20, and are ready to get started making money within the next 30 to 60 days. Join a Success Culture. Nov 30,  · Articles on succession planning may have prompted you to think about selling your own financial planning practice and wondering what price you would get. As both a business consultant and a former acquirer of financial planning practices, I can tell you that your practice is very likely worth less than you think it courya.tk: Allen Duck.