White Papers

Myth And Reality In Advisory Firm Valuations - New White Paper

Harriet Davies Editor - Family Wealth Report 13 May 2013

Myth And Reality In Advisory Firm Valuations - New White Paper

The Alliance for RIAs, a group of such firms which collaborates on issues like growth strategies, has released a whitepaper laying out ways advisors can make their businesses more valuable to external buyers.

The paper, called Myth vs Reality: What is Your Independent Advisory Firm Really Worth?, is the third in a series focused on creating value at advisory firms. It describes a concept called the “multiple gap,” which aRIA says often results in advisors thinking their firms are worth more than they really are. This examines issues like the effect of size on value, and what the key value drivers actually are. It also looks at the difference in value to a buyer of recurring, non-recurring and “portable” revenue.

The paper was put together based on the experience of aRIA members, who collectively manage around $20 billion of client assets.

Group members include: Brent Brodeski, chief executive of Savant Capital; John Burns, principal at Exencial Wealth Management; Ron Carson, CEO of Carson Wealth Management Group; Jeff Concepcion, CEO of Stratos Wealth Planning; Matt Cooper, president of Beacon Pointe Wealth Advisors; and Neal Simon, CEO of Highline Wealth Management.

It can be downloaded here.

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