Financial Services Valuation

Financial Services Valuation Guide: AUM Multiples & Advisor Retention

Financial services valuation guide. Learn AUM multiples, advisor retention impact, client concentration, and how to maximize your RIA/wealth management firm value.

Revenue Multiple
4-8x
EBITDA Margin
25-40%
Recurring Revenue %
70-90%+
Advisor Retention
>90%

Business Metrics

Total assets under management

Enter your business metrics and click "Calculate Valuation" to see your estimated business value.

How Financial Services Businesses Are Valued

Key Valuation Drivers

•
Assets under management (AUM) and growth
•
Recurring revenue percentage
•
Advisor retention and key person dependencies
•
Client concentration and relationship stickiness
•
Profitability and EBITDA margin
•
Regulatory compliance and licensing

Valuation Methods

Revenue Multiple

Company Value = Revenue × Multiple (typically 4-8x)

Best for: Standard financial services valuation

AUM Multiple

Company Value = AUM × Multiple (typically 0.5-1.5%)

Best for: Asset-based financial services firms

EBITDA Multiple

Company Value = EBITDA × Multiple (typically 8-12x)

Best for: Profitable financial services firms

Common Valuation Mistakes

  • ✓Overvaluing based on AUM without considering recurring revenue
  • ✓Ignoring advisor concentration and key person risk
  • ✓Not accounting for client concentration and relationship risk
  • ✓Underestimating regulatory compliance costs
  • ✓Overestimating AUM retention post-acquisition

Related Resources

Valuation Guide

Deep dive into financial services valuation methodology, benchmarks, and buyer perspective.

Industry Overview

Explore financial services market trends, buyer landscape, and strategic considerations for sellers.

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