Matthew R. Crow, ASA, CFA will present “What’s an RIA Worth? Assessing the Value of an Investment Management Firm” at the CalCPA FSS Business Valuation Section Meeting in Oakland, California on August 15th.
In this session, Matt will discuss the current methods used to value investment advisory businesses. He’ll also share factors to consider when valuing these businesses and provide an analysis of the current valuation multiple used to price these companies.
The following objectives will be addressed in this session:
- How to normalize cash flow to determine the profitability of an RIA
- How to compare different investment management firms to determine what risk-adjusted valuation multiples to apply
- How to evaluate the growth potential of one firm relative to the industry or relative to other firms
- Learn what public company multiples say about how a private RIA is valued
- Address whether or not industry transaction multiples are a useful benchmark in valuing an investment management firm
Matthew R. Crow is the president of Mercer Capital and leads the Investment Management Industry team. The team provides RIAs, independent trust companies, broker-dealers, and investment consulting firms with valuation services related to corporate planning and reorganization, transactions, employee stock ownership plans, and tax issues as well as valuations of intangible assets, options, and assets subject to specific contractual restrictions. Matt and his team also consult with investment management clients in the process of selling or buying. Matt publishes research related to the investment management industry and is a regular contributor to Mercer Capital’s weekly blog, RIA Valuation Insights.