What is Your Business Worth?

Many Financial Advisors transition to independence because their old firms had an anemic sunset agreement. However, being independent means you are a business owner and the equity in that business is yours. But what is that equity? What are the considerations of a business valuation? Are there ways you can increase the value beyond simply adding revenue?

When Do You Need a Valuation?

 

  • When you create your continuity plan

  • For your operating agreement (plus a plan for all valuation processes in the future)

  • When you are creating a marketing plan

  • Annually to track your success in growing your practice

  • Annually, depending on your Broker Dealer's requirements, to qualify for potential reward programs

  • When you are ready to sell your practice

  • In the event of the death of a owner or partner

  • When a partner is exiting the firm

  • When a new partner is joining the firm

 

A meaningful valuation is an essential tool for you as a business owner in order to strategically manage the operations and growth of your business.

 

A valuation should do more than just give you a figure of worth. It should explain what the meaningful variables are in determining the value of your business. Which will be crucial in constructing a marketing plan that results in growth and an increase in your equity.

Valuation Services

BTS offers two valuation solutions based on your needs:

BTS Valuation Calculator  

This is an online solution that offers quick, inexpensive, yet meaningful results accepted by most Broker Dealers to determine an affiliate's qualification for reward programs. The calculator generates a report to give the business owner an understanding of the factors used to determine value that can then be used to drive the growth of the business. It is an excellent, cost effective solution when annual valuations must be completed.   

 

The cost of the BTS Valuation Calculator is $425. Your account will be active for 6 months (180 Days) and allow you to recalculate your value whenever you choose. The calculator takes just minutes to calculate. You can learn more about the process here.

Traditional Valuation

Full valuations of your practice or business is important when buying Life insurance for the owners, acquiring another practice, seeking financing, buying Life insurance for the owners, providing shares of ownership to others, creating a Buy/Sell in your Operating Agreement. and selling your practice and business. 

 

BTS does not perform traditional valuations. For that you need a fully accredited valuation firm.  However, BTS does have many ties with firms in this field and can help you source the right firm for you. We can assist in pointing out the differences in each firm and their valuation services, advise on costs, and help you find the valuation that makes sense for you.
 

Please contact Dennis Leininger, President, at dennis@btsplan.com to arrange a free consultation surrounding your specific questions pertaining to a traditional valuation and how we can potentially help.