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A/R Aging Report Guide1031 Exchange GuideLOC GuideSBA 7(a) GuideSBA 504 GuideSection 179 GuideSelling a Business
Setting an Asking PriceUsing a Business BrokerSelling a Business During DivorceSelling a Failing BusinessTransferring Intellectual PropertyPreparing an Online Business for SalePreparing for Sale, Two Years OutSelling a Business QuicklyWriting a Selling MemorandumSelling a Business Step by StepSelling a Business With DebtChanges Worth Making Before SellingAn advisory firm has one input it cannot control and one cost base that cannot flex. That asymmetry decides what the practice is worth in a bad year.
A 45% fall in assets takes 108% off earnings. The firm goes to a loss while the market is only down a third.
Read from the calculator on its shipped example. Lines marked (derived) are the difference between two of its figures rather than one it displays directly.
Every figure above is computed from inputs you control. Change one and the whole model moves.
54% is already distributing, which happens whatever the market does.
These charts are the calculator’s own, drawn from the example it ships with. Put your figures in and they redraw.
Two figures a spreadsheet gets wrong in the same direction. The revenue multiple applied to total revenue prices planning and commission income as if recurring — $471,250 of overstatement. And a principal who still serves clients is normalized at a management salary only, when a buyer keeping that book pays an adviser on the firm's grid too: $315,000 a year, which is $1.26M of price at four times.
Rules of thumb that circulate because they are roughly right. The calculator labels them as such and asks you to record your own source.
The tool applies all of this to your numbers, and tells you where it disagrees with itself.
On revenue and earnings, with the effective fee tracked across five years because it falls almost everywhere. Revenue can rise while the rate the book charges falls, and a buyer projects the rate forward.
Earnings fall faster than assets. On the worked example a 45% fall in AUM takes 108% off EBITDA — the firm goes to a loss while the market is down a third — because the fee comes off the top and the salaries stay.
Yes. A principal who runs the firm and serves clients is doing two jobs. A buyer keeping that book pays an adviser on the firm's own grid: $315,000 a year on a $900,000 book, which is $1.26M of price at four times.
It creates outflow nobody controls. On the worked example 54% of assets sit with clients over 65, and structural outflow of 4.1% a year exceeds net new of 4.0% before markets are considered.
The answers above use the worked example. Your practice will give different ones.
A lender will advance against an advisory book, but not the way they advance against equipment. There is nothing to recover, so they underwrite the transition.
The usual route for a succession or partner buy-in. Ten years against recurring fee revenue, which is the most lendable cash flow in professional services.
Bank debt, seller note and equity against coverage. The tool on this page shows coverage in each of six market scenarios, which is what a lender asks about.
Standby paper carries the gap between the valuation and what the earnings service. On the worked example that gap is $1.22M.
Every 20% owner files one, and with a client list as the only collateral the guarantor is most of the decision.
Revenue can rise while the fee rate falls, and a drawdown takes earnings down faster than assets. Register now and have the scenarios modelled before the market makes the point for you.
No credit card required now. As long as your details are in the system, we send the discount access details when the software opens.
And the financing calculators are free and working today. SBA 7(a), 504, CAPLines, Form 413, equipment and seller paper — your account opens all of them the moment you register, months before the valuation software ships.
The whole analysis exports as one PDF, generated server-side — every tab, the five-year history, the normalization and the working behind each figure. Not a screenshot of the tab you happen to be on.
It carries the business name, the period, who prepared it and for whom, so a lender or a buyer can act on it without asking who produced the figures.
One email when the software opens, and nothing else. Your details are not sold or passed on.
Figures are the calculator’s worked example, read from the tool itself. Thresholds described as conventions are not market observations. Saving is optional and off by default; saved work is encrypted at rest with AES-256. This tool produces estimates on figures you enter, not a valuation, appraisal, or legal, tax or accounting advice. ExitAdviser is operated by Simplifying Calculation LLC, a Delaware limited liability company.