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.
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
NAB Financial Planner Banking’s Shane Kirsch discusses the latest trends in practice valuations, Robbie Bennetts believes many advisers overestimate the value of their practices while Hall & Wilcox Lawyers’ Adrian Lynch outlines factors which can negatively impact the valuation process. Play
The FPA’s Mark Rantall questions traditional methods of practice valuation, NAB Financial Planner Banking’s Shane Kirsch discusses trends in practice valuations while Kenyon Partners’ Alan Kenyon discusses what buyers are looking for in acquisitions. Play
Forte Asset Solutions’ Stephen Prendeville says there has been an increase in business valuations while Genesys Wealth Advisers’ Steve Davison discusses why practices will struggle to attract the best prices. Play
Catch up with Zoe Shacklady, one of our sellers from No More Practice Series One, on life after the sale of her business. She discusses uncertainty around FoFA and how this can impact potential business valuations. Play
Kenyon Partners’ Alan Kenyon discusses how to take the emotion out of the sale process, Perpetual’s Geoff Lloyd examines why it is important to understand the aspirations of two businesses coming together and Forte Asset Solutions’ Stephen Prendeville says a clear vision is critical to a successful transaction. Play
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