Why “Sustainable” Firms are Worth More

Valuation multiples are based on a lot more than asset totals. RIA owners often ask “What is my firm worth?” Many believe valuation multiples are relatively uniform across the RIA spectrum. In fact, valuations vary greatly, and are driven by what we call “sustainability.” Sustainable businesses are marked by five elements: size, margin, an effective/differentiated growth strategy, scalability and professional practices. These elements interact in a virtuous circle to drive value. Read More