{"type":"valuation_estimator","title":"What is my practice worth? Practice valuation estimator","lead":"As of Oct 5, 2026, the published multiples of recurring revenue this estimator applies run from 1.6x to 4.4x (source: Succession Resource Group).","as_of":"2026-10-05","facts":{"inputs_asked":["Annual recurring revenue","Total annual revenue","Client households","Revenue growth per year (optional)","Revenue from your 5 largest clients (optional)","Years until you plan to step back (optional)","Your age (optional)"],"method":["Your recurring revenue is multiplied by each published multiple of recurring revenue that applies to a practice your size. The full range runs from the lowest result to the highest.","Where a source reports the range most deals fell in, that narrower range is shown first.","Where a source gives a multiple of total revenue, it is shown as a cross-check, not as part of the range.","Revenue no source puts a multiple on is left out and named, rather than guessed.","Growth, revenue per client, client concentration, transition timing and client ages are shown with what the sources say about them. They are not turned into numeric adjustments, because the sources do not give numbers for them.","Nothing you enter is stored unless you are signed in and choose \"Save this estimate.\""],"revenue_multiples":[{"label":"Typical multiple of recurring revenue","figure":"1.6x to 4.4x","applies_to":"RIAs and advisors with recurring revenue","publisher":"Succession Resource Group","published":"May 13, 2025","source":"https://www.successionresource.com/selling-book-of-business-for-financial-advisors/","checked":"2026-10-05"},{"label":"Multiple of recurring revenue paid in 62.8% of the deals SRG tracked in 2024","figure":"2.5x to 3.5x","applies_to":"Books of business in 176 transactions completed in 2024 and tracked by SRG","publisher":"Succession Resource Group","published":"Feb 25, 2025","source":"https://www.successionresource.com/blog/srg-advisor-deal-report-2025/","checked":"2026-10-05"},{"label":"Average multiple of recurring revenue, 2025","figure":"3.27x","applies_to":"Books of business in 171 transactions completed in 2025 and tracked by SRG","publisher":"Succession Resource Group, press release","published":"Feb 5, 2026","source":"https://www.newswire.com/news/advisor-m-a-scales-up-larger-firms-higher-multiples-more-complex-deals","checked":"2026-10-05"},{"label":"Multiple of revenue in Advisor Legacy's practice valuations","figure":"2x to 3x","applies_to":"Over 400 practice valuations Advisor Legacy completed since January 1, 2020","publisher":"Advisor Legacy","published":"updated Oct 10, 2025","source":"https://advisorlegacy.com/blog/financial-advisor-practice-values-reach-all-time-high","checked":"2026-10-05"}],"profit_multiples":[{"label":"Multiple of annual earnings, including reasonable owner's compensation","figure":"4x to 8x","applies_to":"Most practices","publisher":"Succession Resource Group","published":"May 13, 2025","source":"https://www.successionresource.com/selling-book-of-business-for-financial-advisors/","checked":"2026-10-05"},{"label":"EBITDA multiple for healthy advisory firms","figure":"5x to 9x","applies_to":"Healthy advisory firms; premium firms higher","publisher":"Advisor Legacy","published":"updated Jun 25, 2026","source":"https://advisorlegacy.com/blog/understanding-valuation-multiples-for-a-financial-advisor-practice","checked":"2026-10-05"},{"label":"Average EBITDA multiple for advisory businesses, 2025","figure":"9.98x","applies_to":"Advisory businesses in 171 transactions completed in 2025 and tracked by SRG","publisher":"Succession Resource Group, press release","published":"Feb 5, 2026","source":"https://www.newswire.com/news/advisor-m-a-scales-up-larger-firms-higher-multiples-more-complex-deals","checked":"2026-10-05"}],"deal_terms":[{"label":"Average share of the price paid in cash at closing, 2025","figure":"68%","applies_to":"171 transactions completed in 2025 and tracked by SRG","publisher":"Succession Resource Group, press release","published":"Feb 5, 2026","source":"https://www.newswire.com/news/advisor-m-a-scales-up-larger-firms-higher-multiples-more-complex-deals","checked":"2026-10-05"},{"label":"Average down payment when the buyer used third-party financing, 2025","figure":"78%","applies_to":"Deals with third-party financing among the 171 SRG tracked in 2025","publisher":"Succession Resource Group, press release","published":"Feb 5, 2026","source":"https://www.newswire.com/news/advisor-m-a-scales-up-larger-firms-higher-multiples-more-complex-deals","checked":"2026-10-05"},{"label":"Average seller note term, 2024, at an average 4.9% interest","figure":"5.94 years","applies_to":"The 56.8% of 2024 deals SRG tracked that used seller financing","publisher":"Succession Resource Group","published":"Feb 25, 2025","source":"https://www.successionresource.com/blog/srg-advisor-deal-report-2025/","checked":"2026-10-05"},{"label":"Average client retention target in deals with a retention clause","figure":"88%","applies_to":"The 52.60% of 2024 deals SRG tracked that included a retention clause","publisher":"Succession Resource Group","published":"Feb 25, 2025","source":"https://www.successionresource.com/blog/srg-advisor-deal-report-2025/","checked":"2026-10-05"},{"label":"Typical length of a retention earnout","figure":"12 to 24 months","applies_to":"RIA transactions","publisher":"Mercer Capital","published":"Nov 21, 2025","source":"https://mercercapital.com/insights/blogs/ria-valuation-insights-blog/2025/earnouts-that-actually-pay-in-ria-ma/","checked":"2026-10-05"},{"label":"Earnout periods after closing that are not uncommon now","figure":"3 to 4 years","applies_to":"RIA M&A in 2026","publisher":"Kitces.com, Richard Chen","published":"Aug 24, 2026","source":"https://www.kitces.com/blog/deferred-payments-trap-seller-valuation-terms-retention-payments-earnout-cagr-target/","checked":"2026-10-05"}],"factor_statements":[{"factor":"Recurring revenue","label":"Fee-based revenue is worth more than commission revenue","figure":null,"applies_to":"Advisory practices","publisher":"Succession Resource Group","published":"May 13, 2025","source":"https://www.successionresource.com/selling-book-of-business-for-financial-advisors/","checked":"2026-10-05"},{"factor":"Growth","label":"After predictable revenue, growth matters most to buyers","figure":null,"applies_to":"Financial services practices","publisher":"Succession Resource Group, sample valuation report","published":"report dated Aug 27, 2021","source":"https://www.successionresource.com/wp-content/uploads/2024/09/Premium-Market-FA-CMA-Valuation-Report-SAMPLE-8-27-21.pdf","checked":"2026-10-05"},{"factor":"Growth","label":"Each 1% of annual organic growth corresponds to a 7% increase in valuation, by DeVoe & Company's estimate","figure":null,"applies_to":"RIAs","publisher":"Financial Planning, reporting DeVoe & Company","published":"Jan 23, 2025","source":"https://www.financial-planning.com/news/the-ins-and-outs-of-valuing-your-ria","checked":"2026-10-05"},{"factor":"Revenue per client","label":"Higher revenue per client means higher expected value","figure":null,"applies_to":"Financial services practices","publisher":"Succession Resource Group, sample valuation report","published":"report dated Aug 27, 2021","source":"https://www.successionresource.com/wp-content/uploads/2024/09/Premium-Market-FA-CMA-Valuation-Report-SAMPLE-8-27-21.pdf","checked":"2026-10-05"},{"factor":"Client concentration","label":"Top five clients at 40% or more of revenue is a risk discount for a buyer","figure":"40%","applies_to":"Advisory practices","publisher":"Succession Resource Group","published":"May 13, 2025","source":"https://www.successionresource.com/selling-book-of-business-for-financial-advisors/","checked":"2026-10-05"},{"factor":"Client concentration","label":"The more assets a few clients hold, the higher the risk and the lower the value","figure":null,"applies_to":"Financial services practices","publisher":"Succession Resource Group, sample valuation report","published":"report dated Aug 27, 2021","source":"https://www.successionresource.com/wp-content/uploads/2024/09/Premium-Market-FA-CMA-Valuation-Report-SAMPLE-8-27-21.pdf","checked":"2026-10-05"},{"factor":"Transition and founder dependence","label":"Most full acquisitions include a transition period with the seller available","figure":"12 to 18 months","applies_to":"Full acquisitions of advisory practices","publisher":"Succession Resource Group","published":"May 13, 2025","source":"https://www.successionresource.com/selling-book-of-business-for-financial-advisors/","checked":"2026-10-05"},{"factor":"Transition and founder dependence","label":"Buyers pay for a team that runs the business without the founder","figure":null,"applies_to":"Advisory firms preparing to sell","publisher":"Succession Resource Group, David Grau Jr. (webinar page)","published":null,"source":"https://www.successionresource.com/selling-in-the-next-3-5-years/","checked":"2026-10-05"},{"factor":"Client ages","label":"An older client base lowers value","figure":null,"applies_to":"Financial services practices","publisher":"Succession Resource Group, sample valuation report","published":"report dated Aug 27, 2021","source":"https://www.successionresource.com/wp-content/uploads/2024/09/Premium-Market-FA-CMA-Valuation-Report-SAMPLE-8-27-21.pdf","checked":"2026-10-05"},{"factor":"Deal terms","label":"All-cash deals are rare and usually come at a sizable discount","figure":null,"applies_to":"Sales of financial services businesses","publisher":"FP Transitions","published":null,"source":"https://www.fptransitions.com/blog/components-of-a-deal","checked":"2026-10-05"},{"factor":"Deal terms","label":"Reported deal values are often the most the seller could receive, not what is paid at closing","figure":null,"applies_to":"Reported RIA transactions","publisher":"Mercer Capital","published":"Feb 16, 2024","source":"https://mercercapital.com/insights/blogs/ria-valuation-insights-blog/2024/reconciling-real-world-ria-transactions-with-fair-market-value/","checked":"2026-10-05"},{"factor":"Deal terms","label":"A dollar of cash and a dollar of earnout are not worth the same","figure":null,"applies_to":"Practice sales and mergers","publisher":"Succession Resource Group, Kristen Grau and Nicole Frey","published":"Aug 26, 2026","source":"https://www.successionresource.com/merger-or-sale-finding-the-right-path-to-your-exit/","checked":"2026-10-05"}]},"sources":[{"url":"https://www.successionresource.com/selling-book-of-business-for-financial-advisors/","checked":"2026-10-05","quote":"For RIAs and advisors with recurring revenue, that multiplier typically falls between 1.6x and 4.4x.","label":"Succession Resource Group"},{"url":"https://www.successionresource.com/blog/srg-advisor-deal-report-2025/","checked":"2026-10-05","quote":"Nearly two-thirds (62.8%) of deals were paid between 2.50x and 3.50x recurring revenue","label":"Succession Resource Group"},{"url":"https://www.newswire.com/news/advisor-m-a-scales-up-larger-firms-higher-multiples-more-complex-deals","checked":"2026-10-05","quote":"the average topline recurring revenue multiple for 'books of business' climbed to 3.27x","label":"Succession Resource Group, press release"},{"url":"https://advisorlegacy.com/blog/financial-advisor-practice-values-reach-all-time-high","checked":"2026-10-05","quote":"Compared to previous years, valuations are significantly higher, averaging at $2 million and selling for multiples of 2 to 3 times revenue.","label":"Advisor Legacy"},{"url":"https://www.successionresource.com/selling-book-of-business-for-financial-advisors/","checked":"2026-10-05","quote":"For most practices, the industry standard multiplier is typically 4 to 8 times annual earnings, including reasonable owner's compensation.","label":"Succession Resource Group"},{"url":"https://advisorlegacy.com/blog/understanding-valuation-multiples-for-a-financial-advisor-practice","checked":"2026-10-05","quote":"For healthy advisory firms, EBITDA multiples often fall in the 5.0x to 9.0x range, with premium firms commanding even higher figures.","label":"Advisor Legacy"},{"url":"https://www.newswire.com/news/advisor-m-a-scales-up-larger-firms-higher-multiples-more-complex-deals","checked":"2026-10-05","quote":"the average EBITDA multiple for advisory 'businesses' in 2025 rose to 9.98x","label":"Succession Resource Group, press release"},{"url":"https://www.newswire.com/news/advisor-m-a-scales-up-larger-firms-higher-multiples-more-complex-deals","checked":"2026-10-05","quote":"increasing slightly from an average of 63% cash down in 2023, to 65% in 2024, and now 68% in 2025","label":"Succession Resource Group, press release"},{"url":"https://www.newswire.com/news/advisor-m-a-scales-up-larger-firms-higher-multiples-more-complex-deals","checked":"2026-10-05","quote":"Buyers using third-party financing had an average down payment of 78%","label":"Succession Resource Group, press release"},{"url":"https://www.successionresource.com/blog/srg-advisor-deal-report-2025/","checked":"2026-10-05","quote":"When seller financing was used in 2024, 56.8% of all deals, the average amortization was 5.94 years at 4.9% interest","label":"Succession Resource Group"},{"url":"https://www.successionresource.com/blog/srg-advisor-deal-report-2025/","checked":"2026-10-05","quote":"The average target retention rate in 2024 was 88.00% of annual gross revenue","label":"Succession Resource Group"},{"url":"https://mercercapital.com/insights/blogs/ria-valuation-insights-blog/2025/earnouts-that-actually-pay-in-ria-ma/","checked":"2026-10-05","quote":"Retention earnouts compensate sellers for transitioning clients and keeping relationships intact through the transition, typically over 12 to 24 months.","label":"Mercer Capital"},{"url":"https://www.kitces.com/blog/deferred-payments-trap-seller-valuation-terms-retention-payments-earnout-cagr-target/","checked":"2026-10-05","quote":"In the current RIA M&A market, earnout periods of three to four years after closing are not uncommon","label":"Kitces.com, Richard Chen"},{"url":"https://www.successionresource.com/selling-book-of-business-for-financial-advisors/","checked":"2026-10-05","quote":"Recurring, fee-based revenue is worth significantly more than commission-based income.","label":"Succession Resource Group"},{"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","quote":"Behind predictability of the revenue stream, there is no more important factor than the growth of a practice from a buyer’s perspective.","label":"Succession Resource Group, sample valuation report"},{"url":"https://www.financial-planning.com/news/the-ins-and-outs-of-valuing-your-ria","checked":"2026-10-05","quote":"DeVoe reckons a 1% in annual \"organic\" growth [...] corresponds to a 7% increase in valuation.","label":"Financial Planning, reporting DeVoe & Company"},{"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","quote":"The greater the revenue per client for example, the greater positive adjustment to the FQ Index and therefore higher expected value.","label":"Succession Resource Group, sample valuation report"},{"url":"https://www.successionresource.com/selling-book-of-business-for-financial-advisors/","checked":"2026-10-05","quote":"If your top five clients represent 40% or more of revenue, that is a risk discount for the buyer.","label":"Succession Resource Group"},{"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","quote":"The more assets held by a small segment of the subject practice, the greater the risk and therefore the lower the value.","label":"Succession Resource Group, sample valuation report"},{"url":"https://www.successionresource.com/selling-book-of-business-for-financial-advisors/","checked":"2026-10-05","quote":"most full acquisitions still include a transition period of 12 to 18 months where the seller remains available.","label":"Succession Resource Group"},{"url":"https://www.successionresource.com/selling-in-the-next-3-5-years/","checked":"2026-10-05","quote":"Buyers pay for clean financials, sustainable organic growth, a team that runs the business without you, and signed agreements, and each of those takes years to build.","label":"Succession Resource Group, David Grau Jr. (webinar page)"},{"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","quote":"The older the client base is, the lower the value will be based on the expected long-term decline in revenue and lack of new potential assets.","label":"Succession Resource Group, sample valuation report"},{"url":"https://www.fptransitions.com/blog/components-of-a-deal","checked":"2026-10-05","quote":"However, for true cash deals, where 100% of the purchase is paid as a non-refundable cash payment at closing (a rare event in this space), we usually see a sizable discount on the purchase price.","label":"FP Transitions"},{"url":"https://mercercapital.com/insights/blogs/ria-valuation-insights-blog/2024/reconciling-real-world-ria-transactions-with-fair-market-value/","checked":"2026-10-05","quote":"the headline deal values we see reported are often based on the maximum possible consideration that the seller is eligible to receive under the terms of the purchase agreement.","label":"Mercer Capital"},{"url":"https://www.successionresource.com/merger-or-sale-finding-the-right-path-to-your-exit/","checked":"2026-10-05","quote":"A dollar of cash and a dollar of earnout are not worth the same to you, and often adjust the risk profile substantially.","label":"Succession Resource Group, Kristen Grau and Nicole Frey"}],"related":[{"title":"What buyers look at","url":"https://advisoriq.com/succession/guides/what-buyers-look-at/"},{"title":"How the price gets paid","url":"https://advisoriq.com/succession/guides/how-the-price-gets-paid/"},{"title":"RIA deal tracker","url":"https://advisoriq.com/succession/deals/"},{"title":"Succession and M&A","url":"https://advisoriq.com/succession/"}],"notes":["An estimate, not an appraisal.","No one's inputs or results appear in this record.","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/valuation/","citation":"AdvisorIQ, as of 2026-10-05. https://advisoriq.com/succession/valuation/","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."}