Buying — A Financial Advisor's Book

Valuing a book of business is rarely a simple formula; it depends on revenue stability and growth potential.

The most common baseline. RIAs often sell for 1.6 to 4.4 times trailing 12-month recurring revenue Succession Resource Group . buying a financial advisor's book

Determine if the revenue is recurring (fee-based) or transactional (commission-based) . Fee-based models are more valuable Unbroker . Valuing a book of business is rarely a

Analyze the age and wealth distribution. A book of older clients nearing the distribution phase may be less valuable than one with younger, high-earners Bill Good Marketing . buying a financial advisor's book

The success of the acquisition depends on how many clients actually move to your firm.

I can provide a more tailored or transition communication plan based on those details.