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
In this whitepaper Business Health advises on how to avoid common mistakes in buying and selling a practice and highlights the importance of intangibles. Ensuring cultural fit and the process of due diligence are also discussed. Download
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