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How much can you get for a book of bus?

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Apr 11, 2006 6:05 am

Say you have $100m under management…how much would the practice/book be worth if sold. Say it is w/Raymond James (instead of LPL or Wachovia not that it matters, if it does let me know)

This is approx breakdown. 60% funds (mostly class A) 5% Annuities, 30% stocks, bonds, CDs, 5% managed accts.

Was at another wirehouse advisor/broker dealer for 6 years before going to RJF, but always just one advisor. At RJF for 6 years.

Any rules of thumb or calculators out there that can be used to assess the value of the business?

Apr 11, 2006 10:27 am

What’s the current GDC that this book is bringing in?  What is the RJF payout?

Apr 11, 2006 3:27 pm

I'm guessing you've got about 200k-250k GDC there, so... you could probably sell that for 1-2x that.  That'll ball park it at 200-500k. 

That's the kind of price/income rate that I see for practices.  I've seen people overpay, and I've seen people get good deals.  How likely is the clientelle to stay with the advisor? 

To get max value for the deal, you should offer to stay a minimum of 3 months to help transition the clients to the new advisor, and offer to finance it yourself. 


Apr 11, 2006 3:49 pm

In the market I’m in you’d get 1.5 x trailing 12 at the most.