Value vs. Price: What Every Financial Advisor Needs to Know About Firm Valuation
Every business has a value, but that number is not the same as what it will sell for. Understanding the difference between value and price is essential to protect what you’ve built and position your firm for future success. This eBook breaks down key differences and how a professional valuation can help you plan, grow, and ultimately exit on your own terms. 1. Value is a Starting Point, Not the Finish Line 2. Understand What Drives Value and Price Value and price are shaped by different forces. This framework breaks down the standards, methods, and market factors that define value versus the real-world dynamics that determine price. Key Takeaway:A valuation follows defined standards and professional methodology to provide a defensible measure of worth. Price reflects real-world negotiation shaped by market forces and motivation. Understand both to plan with clarity and confidence. 3. Timing Matters Timing plays a key role in shaping both value and price. A valuation is a recurring tool that helps you plan proactively—identifying opportunities to strengthen your business and enhance value before you need to act. In contrast, price happens once, when your firm, finances, and personal goals are all aligned and ready for transition. Key Takeaway:Valuation is an ongoing process that helps you strengthen your business long before you sell. Timing your valuation early positions you to capture opportunities and drive a stronger final price when it matters most. 4. Methodology Valuations and purchase prices vary greatly based on the methodologies applied. A valuation relies on data, projections, and standardized assumptions, while price is shaped by negotiation, buyer motivations, and real-world deal terms. Key Takeaway:Value is built through disciplined analysis—price is determined by negotiation and market behavior. Understanding both allows you to balance data with deal dynamics and protect what your business is truly worth. 5. Shareholder Impact The difference between value and price extends beyond numbers—it affects everyone connected to the business. From the company itself to clients and employees, each stakeholder feels the impact of how a transaction is structured and executed. Key Takeaway:A well-planned transaction balances financial return with human impact. Aligning value, price, and process helps ensure your firm’s legacy endures beyond the deal. 6. What Determines Value? Every valuation starts with a purpose—understanding why it’s being done. The reason shapes how value is measured and what the result represents. Think of it like choosing the rulebook before you play the game—the IRS, courts, and buyers all use different ones. Purpose Sets the Framework: The “why” behind a valuation sets the framework for how value is calculated. Even though advisors often expect a single number, the result depends on the reason for the valuation—and that reason determines what the number really means. What Defines Each Standard of Value? Fair Market Value: Assumes a willing buyer and seller, no compulsion, both reasonably informed. Investment or Strategic Value: Reflects synergies, scale, and strategic goals of the buyer. Owner’s Value: Reflects emotional and personal expectations of the seller, influenced by conversations and marketing. Price: Reflects the final negotiated outcome between specific parties. 7. Not All Buyers Are the Same Not all buyers view value the same way because they aren’t looking at cash flows the same way. Each type of buyer brings a different perspective shaped by their goals, resources, and reasons for the purchase. 8. The Advisor Value Journey: Value, Refine, Repeat Each time you measure your firm’s value, you uncover opportunities to refine, strengthen, and evolve. By repeating this process—assessing, improving, and revaluing—your firm’s worth becomes more than a number; it becomes a reflection of ongoing progress. The more you refine, the closer your value aligns with your price when it’s time to sell. Key Takeaway:Valuation isn’t the end. It’s the feedback loop that powers growth, readiness, and ultimately, your price. Download Your eBook Today! Value vs Price: What Every Advisor Needs to Know Every advisory business has a value — but that number isn’t always the same as what it sells for. Understanding the difference between value and price is critical to protect what you’ve built and position your firm for future success. In this eBook, Ryan Grau CVA, CBA and Kristen Grau, CPA, CVA, CEPA break down: Key differences between value and price Using valuation as a strategic planning tool, not a one-time event Identifying what really drives firm worth in today’s M&A market Preparing your practice for growth, succession, or sale on your own terms DOWNLOAD EBOOK
The RIA & Advisor Dissolution Playbook
Dissolve Your RIA the Right Way. Dissolving your RIA is rarely simple. It requires thoughtful coordination across legal, tax, compliance, and client transition steps. Each stage, from initial exit planning and regulatory filings to employee communications, financial wind-down, and document retention, brings unique requirements and potential risks. In this comprehensive playbook, SRG outlines the essential phases of an orderly dissolution, supported by detailed checklists, timelines, and best practices drawn from decades of industry-specific expertise. You’ll learn how to structure the process to minimize regulatory exposure, protect client relationships, and reduce the likelihood of costly missteps. This guide also covers special considerations for RIAs and registered reps, including employee obligations, custodial transitions, tax reporting, and post-dissolution compliance. By following this structured roadmap, advisors can ensure they exit with clarity, safeguard their legacy, and complete the dissolution process efficiently and with confidence. Created by SRG’s team of expert consultants, Kristen Grau, CPA, CVA, CEPA, Nicole Frey, CFP® and Parker Finot, this playbook distills years of hands-on experience guiding advisors through complex transitions—providing the tools, structure, and peace of mind to navigate one of the most significant business decisions with precision and care. DOWNLOAD NOW
Employment Agreements: The 10 Most Commonly Asked Questions
Overview This resource is designed to help financial services business owners navigate one of the most important, but often overlooked, aspects of running a firm: employment agreements. In this practical FAQ guide, SRG answers the ten most common questions about creating, implementing, and maintaining Employee and Contractor Agreements, drawing on decades of industry-specific experience. You’ll learn the key benefits of written agreements, how to avoid worker misclassification, how often agreements should be updated, and how to structure them to protect your firm while supporting staff growth. The guide also covers best practices for incorporating compensation terms, equity grants, non-solicitation provisions, and role descriptions, ensuring compliance and clarity for both employers and employees Created by SRG’s Director of Strategic Organizational Planning, Julia Sexton, CVA®, this guide distills years of hands-on experience helping firms design agreements that retain top talent, minimize risk, and safeguard long-term business value. DOWNLOAD NOW
Divorce Valuations: A Purpose-Built Process for Litigated Matters
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. DOWNLOAD NOW
Equity Compensation: A Technical Comparison between Restricted Equity Grants
Equity grants are a powerful way to reward and retain top talent, align employees with long-term business success, and support succession goals. But not all equity grants are created equal. This white paper explores the critical differences between Restricted Stock Awards (RSAs) and Restricted Stock Units (RSUs)—two of the most common forms of restricted equity compensation. Inside, you’ll learn: How RSAs and RSUs differ in grant mechanics, ownership rights, and taxation. The role of the IRC §83(b) election, and when it may (or may not) be beneficial. The advantages, risks, and tax timing implications of each approach. Which equity structure is most suitable depending on your firm’s stage, entity type, and retention goals. A side-by-side comparison table for quick reference. Written by Julia Sexton, CVA®, SRG’s Director of Strategic Organizational Planning, this resource provides practical insights for business owners designing equity-sharing strategies that protect value, motivate employees, and support long-term succession planning. Whether you’re an advisor preparing for succession, building a retention strategy, or simply exploring the right compensation model, this white paper will help you make informed decisions with clarity and confidence. DOWNLOAD NOW
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. DOWNLOAD NOW
Empowering Advisors, Enhancing Transitions
Empowering Advisors, Enhancing Transitions Discover how SRG helps institutions support advisor growth and retention through expert guidance, seamless transitions, and strategies that reduce lift on your internal teams. DOWNLOAD NOW
Succession Role Transition Planner Tool
Succession planning is a gradual and complex process that involves the smooth transition of trust from one generation of owners to the next. It encompasses various crucial elements such as timeline considerations, mentoring and training, evaluating risk tolerance, managing finances and cash flow, determining valuation, reviewing contracts, and much more. In order to simplify this process, we have created this e-book that breaks down your succession plan roles into 7 categories. It is also an example of what our expert SRG consultants use to initiate conversations and facilitate planning. To ensure that your succession planning is intentional, organized, and strategic, make use of our comprehensive succession planning checklist. It will help you develop a well-thought-out and documented transition plan. Don’t miss out on this valuable resource! DOWNLOAD NOW
The Financial Advisor’s HR Toolkit
DOWNLOAD NOW Streamline Your Practice with These Essential Tools Effective personnel management, including formalized employee agreements, equity sharing, and compensation plans, is equally crucial to the success of your financial practice as well as that of your team. Our toolkit is designed with all the essentials you need to manage your HR processes effectively, saving you time and increasing your efficiencies. Here’s what you’ll find inside: Expert recommendations on employment agreements Best practices for compensation Key elements for clear job role descriptions Guidance for creating a career path for your team Our toolkit is designed to help you improve your employee satisfaction, increase retention, and better align employee compensation plans with business initiatives. Complete the form to receive your free HR Toolkit today! Learn more about SRG’s Employment Resources and Equity Sharing services. Schedule your free consultation below!
Sunset vs. Succession: Realizing the Value of a Career in Financial Advice
Plan Your Exit with Full Information In recent years, expanded access to capital and advances in advisor technology have allowed independent practices to become increasingly transferable. This gives selling advisors more options in exiting the business and transitioning their practice to a successor. To help you plan for your exit, this white paper provides a close look at the benefits of independence followed by a sale of the business to a successor, as opposed to a traditional corporate sunset plan. Fill out the form to download the report. DOWNLOAD NOW