Financial planning practices provide wealth management, retirement planning, investment advisory, and financial counseling services to individuals and families, typically generating revenue through AUM-based fees, flat retainers, or commissions. The industry is undergoing a significant succession crisis as a large wave of advisors aged 55+ approach retirement without formal succession plans, creating substantial M&A activity driven by RIA rollup platforms and consolidators. Fee-only and fiduciary-based models have gained regulatory and consumer preference, increasing the valuations and attractiveness of clean, recurring-revenue practices.
Who buys these: Independent RIAs, wealth management firms, private equity-backed consolidators (rollups), insurance broker-dealers, banks, credit unions, and individual advisors seeking to grow AUM through acquisition
2–4×
Typical EBITDA multiple
$500K–$3M
Revenue range
Growing
Market trend
SBA Eligible
7(a) financing available
Minimum $500K in trailing 12-month revenue; AUM-based fee-only or hybrid practices preferred; 70%+ recurring revenue; clean compliance record with no FINRA/SEC violations; seller willing to transition for 12–24 months; client concentration below 20% in any single client
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Key items to investigate when evaluating a Financial Planning Practice acquisition
Seller Intelligence
Who sells Financial Planning Practice businesses?
Retiring independent financial planners and RIA owners aged 55–70 with established client bases, solo practitioners seeking succession planning, and small ensemble practices looking to exit or merge into a larger platform
Typical exit timeline: 12–24 months
Financial Planning Practice businesses in the $500K–$3M revenue range typically sell for 2–4× EBITDA. Minimum $500K in trailing 12-month revenue; AUM-based fee-only or hybrid practices preferred; 70%+ recurring revenue; clean compliance record with no FINRA/SEC violations; seller willing to transition for 12–24 months; client concentration below 20% in any single client
Financial Planning Practice businesses typically trade at 2–4× EBITDA in the lower middle market. The market is highly fragmented with growing demand, which supports premium multiples.
Financial Planning Practice businesses are SBA 7(a) eligible, making them accessible to first-time buyers. Structured earnout over 2–3 years tied to client retention rates post-close (e.g., 70% upfront, 30% earnout)
Key due diligence areas include: Revenue quality and recurring vs. transactional fee breakdown with AUM verification; Client demographics, average age, and attrition history over the last 3–5 years; Compliance history including FINRA BrokerCheck, SEC examination records, and any client complaints; Client contract transferability and consent requirements under custodian and regulatory agreements; Key person dependency and depth of associate advisor relationships with the client base.
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