In Episode 2 of The Trusted Adviser Podcast, Rob Pyne sits down with Tim Lane, a seasoned chartered accountant and the founder of FinConnect Advisory Group. Tim has been a part of the financial planning industry for 25 years. In this episode, he shares his expertise on valuing financial planning businesses and offers advice on succession planning. What are the key factors that can drive or detract from a business’s value, and how can financial advisers prepare their firms for a profitable sale or transition? Tim shares this and more.
Listen to the show
Topics covered
- About Tim Lane
- FinConnect’s approach to financial planning business valuation.
- How FinConnect differentiates by offering end-to-end solutions for business owners beyond just sales and valuations.
- Understanding future maintainable earnings versus past profits and their impact on valuation.
- Key drivers of business value: profitability, clean books, systems and processes, and client demographics.
- The importance of having a succession plan and grooming the next generation of leaders.
- Common mistakes financial advisers make when trying to increase the value of their business.
- Strategic buyers, private equity interest, and how large firms attract higher multiples in the market.
- The role of recurring revenue multiples vs. EBIT margins in valuing financial planning firms.
- How capital providers like Oaktree Capital are influencing the financial planning industry.
- Tim’s personal journey with FinConnect’s succession planning and valuation.
Show notes and transcript
For the full show notes and transcript from this episode, head to the episode page on The Trusted Adviser website here.