{"type":"succession_guide","title":"What buyers look at","lead":"As of Oct 5, 2026, Succession Resource Group puts the typical multiple of recurring revenue for RIAs and advisors at 1.6x to 4.4x, and buyers decide where in that range a practice falls from its revenue, growth, clients and team.","as_of":"2026-10-05","facts":{"summary":"Revenue quality, growth, clients, team and records: the factors that move a practice up or down a published range.","key_facts":["The typical multiple of recurring revenue is 1.6x to 4.4x, according to SRG.","Top five clients at 40% or more of revenue is a risk discount for a buyer.","By DeVoe's estimate, each 1% of annual organic growth corresponds to a 7% increase in valuation."]},"sources":[{"url":"https://www.successionresource.com/selling-book-of-business-for-financial-advisors/","checked":"2026-10-05","label":"Succession Resource Group: Selling a book of business for financial advisors"},{"url":"https://www.financial-planning.com/news/the-ins-and-outs-of-valuing-your-ria","checked":"2026-10-05","label":"Financial Planning (reporting DeVoe & Company): The ins and outs of valuing your RIA"},{"url":"https://www.kitces.com/blog/advisor-acquisitions-valuation-multiple-adjusted-ebitda-revenue-base-terms-trap/","checked":"2026-10-05","label":"Kitces.com, Richard Chen: Valuation multiples, adjusted EBITDA and the revenue base"},{"url":"https://www.successionresource.com/wp-content/uploads/2024/09/Premium-Market-FA-CMA-Valuation-Report-SAMPLE-8-27-21.pdf","checked":"2026-10-05","label":"Succession Resource Group: Sample practice valuation report"},{"url":"https://www.successionresource.com/selling-in-the-next-3-5-years/","checked":"2026-10-05","label":"Succession Resource Group: Selling in the next 3 to 5 years (webinar page, David Grau Jr.)"},{"url":"https://www.successionresource.com/how-to-make-a-merger-a-growth-move-a-5-step-roadmap-for-advisory-firms/","checked":"2026-10-05","label":"Succession Resource Group: How to make a merger a growth move: a 5-step roadmap for advisory firms"},{"url":"https://www.finra.org/investors/learn-to-invest/choosing-investment-professional/about-brokercheck","checked":"2026-10-05","label":"FINRA: About BrokerCheck"}],"related":[{"title":"Asset sale or equity sale: how practice deals are structured","url":"https://advisoriq.com/succession/guides/asset-sale-vs-equity-sale/"},{"title":"Down payments, seller notes and earnouts: how the price gets paid","url":"https://advisoriq.com/succession/guides/how-the-price-gets-paid/"},{"title":"Minority stakes and outside capital","url":"https://advisoriq.com/succession/guides/minority-stakes/"},{"title":"How long a sale or succession takes","url":"https://advisoriq.com/succession/guides/how-long-a-sale-takes/"},{"title":"Valuation estimator","url":"https://advisoriq.com/succession/valuation/"},{"title":"RIA deal tracker","url":"https://advisoriq.com/succession/deals/"}],"notes":["Educational, not legal, tax or investment advice.","Practice management content is not eligible for CFP Board CE. CFP Board plans to allow up to five hours of it per cycle once its Q4 2027 changes take effect."],"url":"https://advisoriq.com/succession/guides/what-buyers-look-at/","citation":"AdvisorIQ, as of 2026-10-05. https://advisoriq.com/succession/guides/what-buyers-look-at/","license":"https://advisoriq.com/license/","publisher":"AdvisorIQ, independent education for financial advisors","disclaimer":"Summaries of rules set by designation bodies and regulators, which have the final word."}