What Is My RIA Worth?

Practice Management Transactions

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.