Financial Planning & Wealth Management — Business Valuation Multiple
EBITDA Valuation Guide · Small & Mid-Sized Businesses
Actual EBITDA multiples can vary materially based on EBITDA size, growth, recurring revenue, margins, customer concentration, owner dependence, geography and other company-specific factors.
Min
6×
Typical
8×
Max
12×
Revenue Model
Recurring
Capital Intensity
Low
A typical multiple of 8× EBITDA reflects mid-market transactions in the $1–$50M revenue range.
Overview
Financial planning and wealth management businesses typically sell for 6×–12× EBITDA, with a typical multiple around 8×. Valuations are driven by the proportion of recurring, fee-based assets under management and the strength of long-term client relationships. Businesses with a diversified adviser team and low client concentration attract the highest multiples. Key risks include founder dependency and sensitivity to market downturns that reduce AUM.
Key Value Drivers
- High proportion of recurring AUM-based fees
- Strong client retention and long-term relationships
- Qualified adviser team with transferable client books
- Diversified revenue across investment, protection, and planning
- Regulated status with professional accreditation
Key Risks
- Key person dependency on founding advisers
- Market downturn reducing AUM and fee income
- Regulatory changes to commission and advice models
- Client attrition post-acquisition
- Thin margins if heavily reliant on platforms
Real-World Transaction
Ludlow Wealth Management → Mattioli Woods
2021 · Financial Planning & Wealth Management
These transactions involved companies substantially larger than the $1–$50M SME benchmark and are shown for context, not direct comparison.
Disclaimer: All multiples are indicative estimates only and are not formal valuations or investment advice. They should not be relied upon for financial decision-making without independent professional advice.