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A snapshot of a high and low value financial advisory business

The value of a financial advisory business is based on its size, profitability, perceived risk and upside potential for the purchaser. A valuer will have a set of factors that will be assessed and weighted and then added together to achieve a multiple. This will determine the desirability of the business. The multiple is then compared against recent market sales of similar financial advice businesses to provide a cross-check.

Transitioning to a FAP needs to make commercial sense and ideally add value to the business. Download our checklist to rate your own business to see what you may need to do as part of obtaining a FAP licence or merging your business with that of others.