![]() What have historical growth rates in revenue and AUM been? Thus, the higher the revenue for the company. Total assets under management is important because the higher the AUM, the higher the commissions charged. What are the total assets under management? This is because if one, or more of those top clients decide to leave, then a large part of the company’s AUM and revenue leaves with them. When a company has high customer concentration, there is an increased risk to the company. If 50% of the firm’s total revenue comes from the top 3 customers, then the book of business is considered to be highly concentrated. Schedule a Free Consultation! What are the company’s top 3 clients as a percentage of total revenue?įirst, a valuation expert looks at customer concentration. A valuation analyst considers each of these value drivers when determining the value of a financial advisory firm. Schedule a free consultation to get started. We love helping individuals buy or sell a book of business. ![]() ![]() Peak Business Valuation, business appraiser Utah, has valued dozens of financial advisory firms. These are called “ Value Drivers” It is important to evaluate these value drivers for your financial advisory practice, or the practice you are looking to buy. | Business Valuation, Buying a Business, Financial Advisory, Selling a Business, Small Businessĭo you own a financial advisory firm or are looking to buy or sell a book of business? There are several important aspects that impact the value of your financial advisory firm. Value Drivers for a Financial Advisory Firm
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