Of all the topics we cover in RIA Valuation Insights, the most popular concerns what an investment management firm is actually worth. As a consequence, we thought it would be worthwhile to offer a webinar on the topic, and did so on Tuesday, October 3 from noon – 1:00pm (CST).
In the webinar, we covered certain core issues such as:
- How to normalize cash flow to determine the profitability of a 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
- What public company multiples say about how a private RIA is valued
- Are industry transaction multiples a useful benchmark in valuing an investment management firm?
Our whitepaper, Valuing RIAs, gives an overview of these questions, but we covered them in greater depth in the webinar.