Valuation & Benchmarking Resources
Assessing where your business is now, creating specific goals for where you want to be, and implementing a strategic plan to get there is the best recipe for enhancing your enterprise. Be sure to leverage the right tools to discover key insights, define your short- and long-term business priorities, and set appropriate KPIs specific to your business size and priorities. Aired February 16, 2021
Your business is a living, breathing entity. Just like the investments you make on behalf of your clients, it needs to be nurtured and developed in order to realize maximum value. Annual assessments of your business value will help you become a better buyer, plan for your exit, and make important decisions to maximize business growth.
A look back at two decades of valuation and transaction data with insight into what traits and conditions have contributed to sustained business growth and higher values. Advisors and business owners should understand their firm’s position within the industry and be forward-thinking about where they want the business to be in the next 5 – 10 years.
Recurring revenue is one of the most important determinants of value. Revenue produced through management fees, trails, or renewals is ongoing and reasonably predictable while transactional revenue is more difficult to predict. It is important to understand that the predictability of recurring revenue presents less risk to future earnings and has more impact as a value driver.
Today’s independent financial advisors face a daunting array of opportunities (and challenges). The key to harnessing ownership opportunities is to identify impediments before they arise and develop strategies for tackling the issues that present the greatest opportunities for improvement and growth. Discover actionable guidance for seizing ownership opportunities and facing challenges head on.
Many advisory practices are not adequately equipped to grow at the rates they are striving for. Technology provides opportunity to improve this. Investing in technology has a demonstrated relationship to higher growth, more affluent clients, increased profits, and increased value. Cumulatively, strategically—and effectively—utilized technology can unlock a practice’s growth potential and profitability.
The average advisor faces a difficult and increasingly competitive industry. With increased regulatory oversight, technological advances, and the growing need to recruit and retain top talent, it has never been more critical to use benchmarking as part of your strategic planning process. Arming yourself with the best insights into your own business–as well as its place in the industry as a whole–will allow you to nurture business growth.
Owners–and prospective owners–need to accurately determine the value of their financial services practice, understand what drives that value, and learn how it can grow in order to effectively manage equity and build an enduring business. Value is the starting point for any successful growth strategy.
The separation between wages for work, performance incentives, and return on investment needs to be clear. The delineation is critical more a number of important reasons, including the ability to predict expenses, increase value, and create investability. Equity is a powerful compensation tool to attract, retain, and reward talent. It must be used with measured precision to achieve appropriate long-term results.
Your business is more than just an income source. What are the differences between revenue strength and enterprise strength? How does each make an important contribution to the value of your business? Pay attention to ALL factors that drive current and future value to avoid closing off exit planning options down the road.
The value of your practice is determined by many factors, some obvious, and some not so obvious. Even if the idea of exiting the business is far down the road, as an owner you need to consider these ten factors as part of managing and growing the practice.
Your practice is your most valuable asset, and by valuing it, you are empowered to grow, protect, and realize the value you have built. These are ten of many situations where it’s essential to have a current value and accurate understanding of your business, including external sales, acquisitions, legal disputes, and planning for the future.
Our latest book, Buying, Selling, & Valuing Financial Practices, shows you how to complete a sale or acquisition while achieving the best possible terms for both buyer and seller. From valuations to mergers to bank financing, this book provides the perspective and skills you need to work through your deal professionally and efficiently.
with guest David Birnbaum, JD of Bates Group
Join Marcus and special guest David Birnbaum, JD, of Bates Group as they discuss the impact of compliance on business value, as well as the importance of internal compliance audits to stay ahead of any regulatory issues and correction periods that come with them.
EMS Exclusive Resource
FP Transitions' valuation experts, Ryan Grau, CVA, CBA and Warren Burkholder, ASA, MCBA, CBI, go in-depth into the differences between valuation and appraisal, the importance of having a certified valuation analyst, and how the purpose of valuation informs the methodology for the most accurate value.
The Equity Management System® Grow Membership includes an ADDITIONAL annual Comprehensive Valuation for acquisition purposes. Find out why this valuation can be a powerful tool in your acquisition strategy.
An overview of what you can expect from our Comprehensive Valuation, and why it’s the most accurate in the the industry. An annual Comprehensive Valuation is included with each level of Equity Management System® (EMS) membership.
An overview of what information is covered in our EquityBuilder® Benchmarking Report and why it’s key to building your business. An annual EquityBuilder® Benchmarking Report is included in your Equity Management System® (EMS) Grow membership.