How to Value

Your Wealth Management/IFA Business

No two advisory firms are the same - each are unique, just like you and your clients. To provide a one valuation metric that fits all business models is unrealistic. Instead, a matrix of factors determines an achievable valuation.

Factors that influence valuation and their implications


Asset or Share Purchase/Sale

Different taxation principles apply that influence the costs to acquire and sell hence the overall valuation.


Consistently profitable firms with a robust balance sheet will always command a premium valuation.

Client Age Demographics

Client portfolios in capital accumulation achieve higher valuations than the equivalent in drawdown.

Client Charging Structure

Must be at a market rate and offer commercial viability for ongoing servicing.

Client Service Proposition

Clarity, simplicity, and transparency, are important. The absence of structure damages value.


The use of contemporary software tools and maintenance of orderly client records make for transparency, ease of access, analysis, accurate valuation, and post-sale integration.

Sell & Go

The sale of a client database and investment portfolio often leading to a retirement is typically valued using a multiple of recurring revenue.

Sell & Stay

The sale of a business as a going concern is typically valued using a multiple of ongoing annual profit/normalised EBITDA.


Clients located in or close to leading commercial centres make for ease of servicing and commercial viability.

Investment Proposition

Comparable alignment between vendor and acquirer models makes for ease of integration with minimum client disruption.

Aggregate Portfolio Size

Average investment portfolio (£) at commercially viable levels for sustainable client servicing.

Legacy Advice

Existing toxicity or potential liability from legacy advice will influence achievement of PI cover and premiums and hence valuation.

Attitude to High-Risk Product Promotion

Portfolios comprising disproportionate levels of High-Risk product promotion will achieve discounted valuations.

No two deals are the same

All IFA/Wealth Management firms are unique. As individual as their Directors, Staff and Clients. However, universal valuation metrics apply to all.

The best deals are the simplest where both sides to a transaction respect one another and the clients' interests above all other factors, including the money. If you would like to understand more how to value an IFA/Wealth Management business, as a buyer, or a seller, why not contact us?