Practice Valuation Program
Measuring Your Life’s Work
To date, most practice valuations have been based on quantitative “rules of thumb” or anecdotal stories of transactions that failed to account for the unique characteristics of each practice that could make it more or less valuable than the numbers alone might suggest. Our goal is to assist advisors and firms in determining the true value of practices by considering the “qualitative” as well as quantitative aspects of each business. We are also interested in helping advisors identify areas of their practice where opportunity exists to increase the value prior to offering it for sale or transition.
We offer services at various levels to accommodate situations that range from straightforward to complex, as determined by the size and nature of the business, history and dynamics of the people and challenges and opportunities for the practice.
Practice Valuation Program Options
| BASIC VALUATION | COMPREHENSIVE VALUATION | VALUATION MAXIMIZATION |
|---|---|---|
| “Normalized” Income Statements • Advisor provides for past 3 years • Market Logics specifies information required | “Normalized” Income Statements • Advisor provides for past 3 years • Market Logics specifies information required | “Normalized” Income Statements • Advisor provides for past 3 years • Market Logics specifies information required |
| Projected Revenue and Expenses • Advisor provides for next 2 years | Projected Revenue and Expenses • Advisor provides for next 2 years | Projected Revenue and Expenses • Advisor provides for next 2 years |
| Advisor on-line questionnaire • Regarding their business (# clients, average age, staff, etc.) | Advisor on-line questionnaire • Regarding their business (# clients, average age, staff, etc.) | Advisor on-line questionnaire • Regarding their business (# clients, average age, staff, etc.) |
| Phone conversation (30-60 mins.) • Fill in any additional information | Phone conversation (30-60 mins.) • Fill in any additional information | Phone conversation (30-60 mins.) • Fill in any additional information |
| Written Valuation Report • Excel worksheets and any other information used in the evaluation are included | Written Valuation Report • Excel worksheets and any other information used in the evaluation are included | Written Valuation Report • Excel worksheets and any other information used in the evaluation are included |
| On-site visit (4-6 hours) • Determine unique characteristics of practice that would affect value | On-site visit (4-6 hours) • Determine unique characteristics of practice that would affect value | |
| Additional Insights • Identification and description of ways to increase value | Additional Insights • Identification and description of ways to increase value | |
| Value Maximization Strategy • Development and implementation of strategy to maximize practice value | ||
| Coaching • Implement strategy • Unlimited email, plus bi-weekly for 3-6 months by phone or in-person | ||
| On-going coaching • Optional – cost determined by frequency of contact, etc. |
