How to Value a Financial Advisory Practice: RIA Valuation Multiples

What is your financial advisory practice really worth, and why does the answer change depending on who is asking? In this webinar, SRG's Ryan Grau, CVA, CBA, and David Grau Jr., MBA, explain how valuation purpose, buyer type, deal terms and KPIs shape the value of your practice, and what you can do now to grow that value before you sell. You will learn: Today's average RIA multiples (3.27x recurring revenue, about 10x earnings) and the range behind them When to use revenue multiples vs. earnings multiples, and why you shouldn't blend them Why your practice has more than one value, depending on purpose and buyer How internal, peer and PE-backed aggregator buyers value the same practice differently Why headline multiples are not price (deal terms, earnouts and rolled equity) The 4 mistakes that undermine a valuation, including using the wrong benchmark The KPIs that move value most: recurring revenue, organic growth, profitability and key person risk Why AI tools and broker-dealer estimates can't replace a formal valuation 0:00 - Welcome and meet the presenters 2:55 - 5 key takeaways: your practice has more than one value 6:00 - Average RIA multiples: 3.27x revenue and 10x earnings 7:00 - Revenue vs. earnings multiples: size decides the lens 8:00 - The range behind the averages 10:00 - How cutting overhead can add $1M in value 11:00 - Why to start 5 years before you sell 12:30 - Valuation purpose: binding vs. informational 19:00 - Who's buying: internal, peer and PE-backed aggregators 25:30 - The 2 factors behind every valuation 29:30 - Higher multiples come with strings attached 31:15 - 4 mistakes that undermine your valuation 33:25 - The $10M firm valued at $10M 35:30 - KPIs: revenue, growth and profitability 37:15 - Recurring revenue and the multiple range 39:00 - Organic growth, market growth and net flows 41:30 - How compensation practices drive profitability 43:30 - Value drivers, risk factors and fact patterns 47:45 - Meetings outside the office and virtual meetings 53:00 - Practice A vs. Practice B: same revenue, different value 55:15 - Valuation myths advisors still believe 59:45 - When to get a formal valuation 1:02:45 - Can ChatGPT or Claude value your practice? 1:06:45 - Sell-and-stay deals: separate price from compensation 1:11:00 - Closing thoughts Ready to find out what your practice is really worth? Schedule a consultation with our team. Take the Succession Readiness Quiz: https://succession.typeform.com/to/Jh... Learn more about SRG's Seller Advocacy program: https://www.successionresource.com/se... Learn more about SRG's Advisor Merger Support: https://www.successionresource.com/ad... Schedule a consultation: https://www.successionresource.com/sc... Connect with SRG: Website: https://www.successionresource.com LinkedIn:   / succession-resource-group   Email: sales@successionresourcegroup.com Phone: 503.427.9910 Address: 12570 SW 69th Avenue, Ste 100, Portland, OR 97223 Speakers: Ryan Grau, CVA, CBA - Director of Valuations, SRG David Grau Jr., MBA - Founder & CEO, SRG #practicevaluation #financialadvisors #RIAvaluation #valuationmultiples #businessvaluation #successionplanning #RIA #wealthmanagement #advisorMA #exitplanning #dealstructure #annualvaluation #SRG