Know where you stand.
Know what to expect.

Get a market value appraisal for your practice.

Request Valuation

Know where you stand.
Know what to expect.

Get a market value appraisal for your practice.

Enquire now
How do we value your practice?

– Multiple of Recurring Revenue, or
– Multiple of Earnings before Interest and Tax

We assess businesses and/or client bases using the appropriate methodology for your situation and will assess the practice against 8 key items that buyers consider when reviewing an acquisition opportunity. These 8 items significantly influence the buyer’s perception of value and risk.

Our appraisals have been used for:

  • Legal matters
  • Personal matters
  • Financing matters
  • Shareholder negotiation and succession
  • Sellers looking to validate a buyer’s offer
What makes a business attractive to potential acquirers?

Different acquirers value different things, but here are 6 common ones.

Information, the more the better.

Information on clients, numbers by service segment and recurrent revenue segment; FUM segments, demography, location. Information on sales history, new revenue and clients per year with sources, new FUM written and recurrent revenue split between existing & new clients.

A clear advice offer and service proposition.

One that is documented for clients and staff and is incorporated into client communications.

Clients who are transferable.

Clients who are happy for staff to respond to their inquiries, not just you, or to deal with other advisers in the practice if you’re away.

Staff retention.

Ensuring your advisers are on commercial contracts with restraint of trade terms.

Profit / EBIT, the higher the better.

Most practices that are buyers will use bank funding and require profit/cashflow to cover loan servicing costs – banks look for the ability to service up to 2 times loan service costs. Institutional buyers look to optimize revenue and profit across advice, platform and investment management.

Referral sources that will continue post sale.

Buyers are buying future revenue and profit. They look at the past to identify where the business revenue and profits have been, and they’re banking on the future being at least the same or better.

Ability to control risk.

Buyers will want to introduce terms for the transaction that help them mitigate perceived risk and aid in integration.

Find out what your business is worth.

Request Valuation