Financial planning business valuation is the practice of obtaining a fair market value for your company. Whether you are interested in buying or selling a business, assessing its correct value should be your first priority. There are many different factors that go into valuating your financial planning business, such as the diversity of your financial product offerings, your proximity to a large metropolitan area and the general wealth of the area in which your office is located. You can get the information you are looking for in a few different ways. You can use an outside valuator to assess the fair price of your business or you can do it yourself.

Getting a business assessment will help you make sound business decisions. Consider these ideas to find your financial planning business’ worth:

1. Meet with a business appraiser in your area and get the most out of your in-person sessions.

2. Use business valuation software to determine your financial planning business’ worth.

3. Make use of market reports to value a financial planning business’ unique sector.

Action Steps
The best contacts and resources to help you get it done

Contact an experienced, local professional to purchase a financial planning appraisal

A local valuation specialist will have a better idea of regional economics, allowing you to time the sale or restructuring of your business, for example. When looking to appraise a financial planning business, a local professional will be able to meet with you and explain the different reports and formulas that are necessary to take into consideration, in order to find your financial planner business' worth.

I recommend: Sun Business Valuations is located in Hasbrouck Heights, NJ. They dedicate all of their time and expertise to performing comprehensive and accurate business valuations. Allison Appraisals & Assessments & Business Valuations has office locations across the country and have many years of experience in business valuations in all major industries, including financial planning.

Purchase specialized software to appraise a financial planner business on your own

Learn how to value a business by using helpful financial planner business valuation software. The factors and formulas created especially for valuing financial planning business are included, meaning you will get a report tailored specifically to your industry and particular business.

I recommend: RDS Associates offers a software called BizPricer that can determine the market value of any type of financial planner business that has at least three years of income and expense data. Business-Valuations.biz is an online tool that allows you access to their business valuation tool for the specific amount of time you purchase.

Locate specialized business reports to value a financial planner business' unique sector

A general economic report will show how the overall economy is faring. One of these industry-specific reports will go into more detail regarding the performance of the financial planning sub-division you are in. Business reports of all kinds will give you all of the information you will need when you want to value a financial planning business.

I recommend: MicroBilt Corporation has reports that provide the strategic assessment of the financial planning industry to help you perform your business valuation. Industry Eye provides industry financial data to assist you while you are putting together your financial planner business valuation.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Purchase a financial planner appraisal at least once a year to make sure your business affairs are in order and your financials are what you expect them to be.