1.Mutual Fund Managers
2.Separate Account Manager
4.Private Bank & Trust Companies
5.Private Equity Managers
6.Variable Annuity Managers
8.Index Fund Managers
9.Venture Capital Firms
10.Hedge Fund Managers
1.Financial Technology Providers
2.Retirement Plan Administrators
3.Financial Information Providers
4.Mutual Fund Administrators
5.Custodians & Clearing Firms
7.Traders & Makers
11.Wealth Mgmt. Tech. Providers
1.Private Banks & Trusts
3.Family Offices & MFOs
6.Financial Planning Firms
8.Registered Investment Advisors
10.Credit Unions & S&Ls
Your Valuation Challenges
You may need to reconcile valuation differences between transactions involving internal and external parties.
You need to value a firm with fee-based and/or commission-based revenue.
You need to value a firm that does business as one or more of the following: a wealth manager, an investment manager, a broker dealer, a trust company, an accounting firm, an insurance firm, and/or a technology provider.
Firms with alternative compensation paradigms.
Firms with variable growth or low profits.
You need to overcome an industry valuation paradigm that is deeply rooted in folklore as opposed to the theory of finance.
You need a valuation that takes into account your firm’s scale, technology, operations, and business model.
You may need to estimate synergy value and allocate that to stakeholders in a transaction.
You need to develop a valuation methodology for your legal documents that will stand the test of time.
In the event of a transaction, you may need to know how deal structure and valuation interact.
You need to know how control and liquidity impact valuation and if/when premiums or discounts should be applied.
You need to understand the drivers of value and how your firms is doing with each.
Scorecard Results – receive an accurate indication of where your firm stands relative to the industry; scoring compiled on 70 factors that drive firm valuation
Financial Model – snapshot of your firm’s financials as well as projection of your firm’s future state
Executive Memo – obtain two-page letter addressing key points related to your firm’s valuation
Detailed Report – Scorecard results are interpreted, analyzed, and outlined in this multi-page report; analysis includes your firm’s key performance metrics as well as projections on how your firm can maximize its value in certain areas
Report Delivery Consultation – scorecard results delivered by valuation expert
Recommendations and Guidance – options on how to improve included as part of the report delivery consultation
Our Valuation Process
Click on a step to learn more >
Scorecard Results X X X
Financial Model X X X
Executive Memo X X X
Report Delivery Consultation X X X
Monthly Newsletter X
Detailed Report X X
Recommendations/Guidance X X
Educational Services X X
New Partner Hire X X X
Sharing Equity X X X
Strategic Planning X X X
Continuity Planning X X X
Strategy Implementation X X
Succession Planning X X
One Time Valuation/ Free Subscription
Our Valuation Plans
Enter data into valuation analyzer = estimated 1 hour to fill out (can be accomplished online, and based on state of firm’s data)
Draft Executive Memo = estimated 2 days
Deliver Final Memo and Provide Necessary Commentary = 1 to 2 hours
Develop Recommendations and Guidance
Process data = estimated 2 to 5 days
Develop Letter = 2 days
Discounted Cash Flow
Adjusted Present Value (APV)
Multiple of Discretionary Earnings
Capitalization of Earnings
Capitalized Excess Earnings
Economic Value Added
Internal Rate of Return (IRR)
Net Present Value (NPV)
Valuation is perfected by having a high quality database of intelligence on the relevant firms, and the practical experience to know which of the 15 different valuation techniques are most appropriate for a given company or situation. Fine tuning of the valuation to match a specific company’s profile in the market includes a host of factors such as growth rates, scale, profitability, life cycle, brand equity, and competitive positioning. Accordingly, non-customized valuation reports should be viewed as an initial sense of valuation and a starting point for the rigorous analysis that is essential to a company-specific valuation. Below is a chart outlining the four approaches and 15 valuation methods that ECHELON may employ depending upon the profile of the engagement.
Our Valuation Methods
>$2 Million In Revenues
>$200 Million In AUM
RIA Valuations is the leading valuation provider for wealth and Investment management firms with more than $200 MM in AUM or $2 MM in revenues. Indeed many growing firms have leveraged RIA Valutions' expertise to improve their growth and gain additional scale.