How RIA Valuations Work: What Drives Your Number
Author “Is my practice worth 15x?” If you have spent any time around other advisors lately, you have probably heard some version of this. Someone sold for 15 times EBITDA. Maybe it came up at a conference, maybe a peer mentioned it over dinner, maybe it showed up in a headline about a big platform acquisition. Here is the part worth sitting with: that number is probably real. Somebody likely did sell for that. What tends to get lost is what the number was actually describing. Try asking it a different way. Is your practice worth 15x to your partner in a buy-in, or to the next advisor who might take it over one day? Almost certainly not, and that has nothing to do with how good the practice is. The cash flow simply will not support a price like that. No lender is going to underwrite it at that level, and no successor could service that kind of debt without the deal collapsing under its own weight. Now, ask it again about a well-capitalized acquirer who can fold your firm into a much larger platform, layer in synergies you could never generate alone, and pay a meaningful part of the price in equity rather than cash. Suddenly 15x is not just possible. It might be exactly right. Same practice, two very different buyers, two very different numbers, and neither one of them is wrong. That is really the question underneath the question. Before anyone can tell you what your practice is worth, you both need to agree on who is asking and why. A number built for an internal succession plan and a number built for a strategic sale were never meant to be the same number, and holding one up next to the other is a bit like comparing what a house would rent for against what it would sell for. Both are real. They are just not the same measurement. This is where a closer look at the data helps, not because it hands you a single magic multiple, but because it shows you the range and what actually lives inside it. SRG’s 2026 Advisor M&A Review looked at 171 peer-to-peer transactions completed in 2025, representing roughly $14 billion in transferred AUM. Here is how EBITDA multiples broke down across that data: Statistic EBITDA Multiple Maximum 13.75x Third quartile 12.71x Median 11.65x Average 9.98x First quartile 6.41x Minimum 5.90x Standard deviation 3.03x The high end of that range topped out at 13.75x, with an average of 9.98x, up from 9.2x the year before. Recurring revenue multiples averaged 3.27x, up from 3.08x. Worth flagging: this data set is built entirely from peer-to-peer transactions, and we intentionally leave private equity and aggregator deals out of it. Those transactions are measuring something different, what a specific, well-capitalized buyer is willing to pay given its own synergies and growth plans, rather than what a typical buyer would pay in the open market. If you have heard about a deal north of 13x or 14x, there is a good chance that is exactly where it came from. None of that means the number you heard was wrong. It probably was not. It just was not answering the question you are actually asking, which is usually some version of, what is my practice worth to me, right now, for the purpose I have in mind. That is the question this article is built to help you answer, drawing on what SRG’s valuation team sees across thousands of engagements, working almost exclusively with financial advisory practices. The multiple is an output, not an input So, to get to your number, and to understand why it might not resemble your neighbor’s at all, it helps to clear up something almost nobody explains plainly: the multiple everyone talks about is not where a valuation begins. It is where one ends. A gross revenue multiple, an EBITDA multiple, and an EBOC multiple are not, on their own, a finished valuation. The market approach genuinely does start with a multiple, that is the whole premise behind it, but a raw multiple pulled from someone else’s transaction reflects that transaction’s risk profile, not yours. Before it means anything for your practice, it has to be risk-adjusted to reflect the specific characteristics of the practice being valued. The income approach works differently. Rather than starting from a multiple, it discounts a practice’s projected cash flow directly, using a discount rate built around that practice’s own risk, to arrive at value. Either way, the number you hear at a conference is rarely the number that would actually apply to your practice, because it has not been adjusted for the risk that is unique to it. There are three generally accepted valuation approaches, asset, income, and market, and pricing multiples live only inside the market approach, derived from private transaction data on comparable practices. Taking a hearsay multiple and applying it to your own revenue is not the market approach. It is arithmetic built on someone else’s assumptions, for someone else’s transaction. Here is a real example of how far that gap can stretch. In a recent engagement, a single market-based value indication implied an EBITDA multiple of 22.56x against the firm’s own reported earnings. That figure looked alarming until we adjusted the earnings side. A buyer acquiring full control would not carry several of the seller’s current costs: one of the older owner’s compensation would not be replaced along with several other roles that would simply be absorbed into the buyer’s existing infrastructure. Adding those costs back roughly tripled the earnings figure, and the very same value, measured against that buyer-adjusted number, implied 8.38x instead. Same practice, same dollar value, same date. Only the earnings side of the ratio changed. Observation: A multiple only means something once it has been risk-adjusted to your practice. SRG Pro Tip: When you hear a multiple, ask three questions before you react. Multiple of what? Under whose expense structure? How much was cash at close? The question behind the question: who is the buyer? We touched on this earlier with the partner buy-in example, but it deserves a closer look, because almost every disagreement about value traces back to this exact point. It is rarely a disagreement about methodology or market conditions. It is a disagreement about who the assumed buyer is. Different buyers bring different cash flow, different levels of control, and a different ability to make a price actually work, so naturally, they do not land on the
How to Get “PE Value” With or Without PE
Watch the Replay Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form.First Name *Last Name *Phone * Work Email * Would you like to join SRG's newsletter to receive industry updates and other webinar opportunities? Yes No Access Recording Can You Get Private Equity Value Without Selling to Private Equity? In this session, Succession Resource Group’s David Grau, Jr., MBA, unpacks how advisory firm owners can pursue private equity-level value whether or not they sell to private equity. The webinar breaks down the difference between direct PE investment and PE-backed aggregators, how headline multiples of up to 15x EBITDA translate into the 9x to 11x most sellers actually realize once deal terms are accounted for, and why the definition of a seller has shifted toward owners who sell and continue to run their firm. David also reviews the four variables that shape the right path, including practice size, timeline, buyer universe, and long-term priorities, along with the deal structures that decide what an owner takes home, from the traditional 80/20 down payment to today’s 40/30/30 split of cash, rolled equity, and earnouts. He then shows how internal succession and peer-to-peer sales can close the value gap and approach PE-level outcomes when firms start early, keep growth in focus, and sell in tranches. Advisors weighing an exit in the next three to ten years, evaluating an unsolicited offer, or planning an internal succession will find this a practical, data-backed guide to their options. Host David Grau Jr. MBA CEO/President Paper-plane Linkedin-in
2026 Advisor M&A Review
Webinar Recordings Watch the Webinar Replay 2026 Advisor M&A Market Insights: What Actually Happened in Advisor M&A Powered by SRG’s 10th annual review of completed M&A transactions, our Flagship webinar distills what actually happened in the market into clear, decision-ready benchmarks for RIAs and financial advisory firms. Built on the industry’s most comprehensive dataset of verified, closed transactions, this session delivers highly accurate valuation benchmarks and deal insights that go far beyond self-reported surveys. You will learn what is driving multiples, where buyer demand is strongest, and how terms are shifting as the market evolves. We will also break down the valuation metrics advisors care about most, including revenue multiples versus EBITDA multiples, and explain when each applies based on business model, size, profitability, and growth profile. Valuation is only part of the story. This webinar also dives into the deal structures that determine what sellers actually take home, including cash at close, seller notes, and other components that can significantly impact real outcomes. You will leave with clarity on what buyers are prioritizing, what quality firms are commanding in today’s market, and how to position your business for a stronger result. Led by David Grau, Jr. MBA (CEO) and Parker Finot (Director of Transaction Advisor Services), this is a data-backed, practical session designed to help you make smarter decisions with more confidence. Whether you are preparing to build value, buy, sell, or accelerate growth, this will be one of the most actionable hours you can invest in your 2026 planning. Get the Presentation Deck Download Download the Infographic Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Phone Work Email *How Did You Hear About SRG? *— Select Choice —ConferenceDirect MailExisting/Past ClientGoogle AdWordsOtherReferralSocial MediaSeminar/WorkshopWebinarWebsite Download Speakers Host David Grau Jr. MBA CEO/President Paper-plane Linkedin-in Host Parker Finot Director of Transaction Advisory Services Paper-plane Linkedin-in Sponsored by Data Contributors Transcript 100:00:06.580 –> 00:00:25.530David Grau: All right. Good afternoon, everybody. Welcome to Succession Resource Group’s 10th Annual 2026… well, it’s not the 10th annual 2026 review, but it’s our 10th annual review of the M&A data. This is our 2026 edition. Really excited to have you join us here today. We… 200:00:26.020 –> 00:00:45.119David Grau: we like being able to pause in January, aggregate all the deal data, all the succession data, everything that we have seen happening in the prior year, and try to feed that back to you, us, as an industry, just to be able to keep our collective fingers on the pulse of what’s happening out there for buying and selling practices. 300:00:45.310 –> 00:00:58.569David Grau: This is probably not your first rodeo, I know there’s a bunch of you that join us every year for this, as well as listen to us occasionally at the custodial, broker-dealer conferences, FPA meetings around the country throughout the year. 400:00:58.740 –> 00:01:09.049David Grau: We want to try to help you stay abreast of this, because at the end of the day, big firm, small firm, RIA, duly registered, whatever the label is that you are wearing today. 500:01:09.490 –> 00:01:25.569David Grau: Your business, your advisory practice, is probably your most valuable asset, and we want to make sure, whether you’ve done a valuation or not, you can at least have a number next to it on your personal balance sheet, because it has such substantial value, and frankly, today, it’s harder to understand than ever before. 600:01:25.940 –> 00:01:41.339David Grau: Right? You read the trade publications, the press releases out there about deals, it’s enough to make your head spin. So, we’re gonna try to share that data with you here today, but also carve out time to answer your questions, which hopefully you either A showed up with some, or B, 700:01:41.410 –> 00:01:45.949David Grau: We’re going to prompt some, just organically, as we progress through the slides here today. So. 800:01:46.730 –> 00:01:50.170David Grau: Couple boring administrative things to knock out first. 900:01:50.610 –> 00:01:55.019David Grau: The housekeeping items… Watch the chat. 1000:01:55.020 –> 00:02:15.710David Grau: There’s a chat feature in here. Granted, it’s a one-way chat feature, but there you go, see? There’s information that will be dropping in there for you, so it should be helpful. Use the Q&A feature. There’s a Q&A panel here, I promise you, we will actively watch it. If you have technical issues, that won’t be Parker and I, we’ve got Guy here, our amazing moderator, that will help with that stuff, but if you have questions. 1100:02:15.780 –> 00:02:17.830David Grau: As we progress through the slides. 1200:02:18.410 –> 00:02:30.529David Grau: We will make sure we either answer them organically as we progress, because Parker and I will be watching the Q&A panel, or we’ll answer it towards the end, because we are planning to reserve 15-20 minutes for that specifically. So… 1300:02:30.530 –> 00:02:40.079David Grau: Beyond that, there is a poll question we’re gonna pop up. This just helps us have a better idea, better understanding of you as our audience, where you’re at. 1400:02:40.080 –> 00:02:48.589David Grau: what’s relevant and interesting to you, so you’ll see that pop up here momentarily. We’ll take it down, and won’t get in the way. You know, Zoom, presumably, it’s off to the side. 1500:02:48.890 –> 00:03:01.649David Grau: So, you’ll see the poll question pop up, case in point. So there’s a poll question, if you would participate, that would be lovely. If you don’t, we’ll just leave it up forever. So, a couple other easy ones. We always get questions on slide availability. 1600:03:01.680 –> 00:03:11.309David Grau: These slides are available. Our team will be reaching out to you after we get done with the session here today, either tomorrow or certainly early next week, if you want a copy of the slides. 1700:03:11.440 –> 00:03:17.069David Grau: Just let Craig, Sabrina, Nikki, and our team know, and they will happily share them with you. And… 1800:03:17.380 –>
Value vs. Price: What Every Financial Advisor Needs to Know About Firm Valuation
Value vs Price: What Every Advisor Needs to Know Your most valuable asset in your business is the client relationships you build. Transferring your clients and the revenue that is produced is one of the hardest steps an owner will undertake in their career and it’s important to do it right the first time. Selling your business can seem like a daunting task at first — our Seller Readiness E-Book identifies crucial elements for you to think about as you begin the process of finding your successor. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Phone Work Email *How Did You Hear About SRG? *— Select Choice —ConferenceDirect MailExisting/Past ClientGoogle AdWordsOtherReferralSocial MediaSeminar/WorkshopWebinarWebsite Download
What is Your Practice Really Worth?
Every Ameriprise advisor wonders about “the number,” but valuation goes far beyond the math. In this exclusive session for Ameriprise advisors, Kristen Grau and Ryan Grau shared how to think like a buyer, use valuation as a preparation tool, and set realistic expectations for a future sale or succession. Watch the replay to learn what drives value, what buyers really look for, and how to strengthen your firm’s position before it’s time to transition. Watch the Replay
Divorce Valuations: A Purpose-Built Process for Litigated Matters
Download Your eBook! Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Phone Work Email *How Did You Hear About SRG? *— Select Choice —ConferenceDirect MailExisting/Past ClientGoogle AdWordsOtherReferralSocial MediaSeminar/WorkshopWebinarWebsite Download Divorce valuations at SRG are not ordinary business valuations, they are litigation tools. Every step of our process is designed to align with legal expectations and withstand scrutiny from attorneys, judges, and opposing experts. Inside this white paper, you’ll learn how SRG’s process is: Built exclusively for the business-owning spouse (in-spouse). Structured for success through discovery calls with attorneys. Issued only as Conclusions of Value, never Calculations. Supported with options for goodwill bifurcation, expert testimony, and rebuttals. Written by Ryan T. Grau, CVA, CBA, this resource outlines SRG’s defensible, litigation-ready valuation process, providing clarity, independence, and confidence in even the most complex matters.
Practice Value Assessment Tool Overview
Whether you’re planning for succession, preparing to sell, or simply tracking your firm’s value over time, SRG’s Practice Value Assessment Tool (PVA Tool) gives you instant access to reliable valuation estimates—anytime, anywhere. Powered by real-world transaction data and backed by SRG’s expert M&A team, the PVA Tool is the only valuation engine built specifically for financial advisors. With just a few key inputs, users can model scenarios, export professional reports, and identify opportunities to increase firm value. Download the brochure to see how the PVA Tool brings speed, accuracy, and simplicity to your valuation process. Watch our PVA Tool demo. Please enable JavaScript in your browser to complete this form.Please enable JavaScript in your browser to complete this form. Name * FirstLast Phone Work Email *How Did You Hear About SRG? *— Select Choice —ConferenceDirect MailExisting/Past ClientGoogle AdWordsOtherReferralSocial MediaSeminar/WorkshopWebinarWebsite Download
Balancing Act | Exploring Value and Terms in Deals (Ep. 24)
Breaking the Cycle | Compensation Strategies That Protect Value & Drive Growth
Valuation expert Ryan Grau, CVA, CBA, and compensation strategist Julia Sexton, CVA, reveal the most common comp mistakes—and how to fix them. Learn how to build pay models that drive growth, retain talent, and preserve business value. Watch the Replay Host Julia Sexton, CVA Director of Strategic Organizational Planning Paper-plane Linkedin-in Host Ryan Grau, CVA, CBA Director of Valuations Paper-plane Linkedin-in
How to Get 10x for Your Advisory Practice
Advisory M&A experts Kristen Grau, CPA, CVA, CEPA and Todd Fulks, JD, BFA unpack what goes into building a firm worth top-tier multiples. From growth strategies to value drivers, learn how to position your practice for maximum return—whether you’re selling soon or planning ahead. Watch the Replay Host Kristen Grau, CPA, CVA, CEPA Executive Vice President Paper-plane Linkedin-in Host Todd Fulks, JD, BFA