No topic has proven to be more controversial than what financial planning practices are actually worth. Practice owners everywhere want to know how industry changes will impact on their final sale price. While some leading industry experts suggest that demand for practices is slowing and valuations are falling, others believe a consolidation among institutional buyers will benefit strong businesses seeking to change hands in the near future.
The measures used to assess practice value are also changing. Buyers are becoming more thorough in their due diligence processes and the traditional recurring revenue models of valuation are losing their authority as a guide on practice value. EBIT multiple models are becoming more prominent in practice valuation.
Find out what these developments will mean for your practice value from the expert cast of No More Practice 2.
In order to value your practice, it is important to understand who the potential purchaser is. In this white paper, DFK outline how this can have a significant impact on not only the valuation that is arrived at, but also any terms that may be agreed upon for the sale, such as deferred payments, equity rather than cash, vendor financing etc. Download
The GFC and regulatory change are impacting the way in which potential acquirers value professional practices, and businesses need to demonstrate what their true value is now more than ever. 0Read More
Creating and communicating value is a cornerstone of your practice value. It is important to understand the value you bring to the table - both for your clients and potential acquirers - to boost the value of your practice. 0Read More
Count Financial’s Barry Lambert argues that FoFA will increase costs for financial planning businesses, the AFA’s Richard Klipin discusses how business valuations may change post-FoFA and Perpetual’s Geoff Lloyd underlines the importance of robust business models in practice value. Play
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