It’s the question I hear most often, and the honest answer is: it depends less on a single multiple than most advisors expect.
Rules of thumb get passed around constantly, like 2-3x revenue, or a round multiple of earnings. They’re a starting point at best. Two practices with the same revenue can sell for very different amounts, and two offers with the same headline number can deliver very different results over time.
Here’s how to think about what your practice is really worth.
1. Start with what you actually own
Your channel shapes your options before anything else.
- W-2 advisors don’t own their book in the legal sense. Your options typically include a firm’s sunset program, moving to a new platform or going independent first and selling later. Each produces very different economics and tax treatment.
- Independent advisors own their practice and can sell it, partner with a larger firm or bring in a successor.
- RIA owners own an enterprise, which opens the door to minority investments, full sales and structures that let you stay involved while taking some value off the table.
2. Know what drives value
Buyers pay for predictability and growth. The factors that move a valuation most include:
- Recurring, fee-based revenue
- Consistent organic growth, not just market gains
- Client demographics, especially the age and concentration of your largest relationships
- Team depth and a clear successor
- Profitability and clean financials
- A documented succession plan
Improving even two or three of these before going to market can meaningfully change the outcome.
3. Look past the headline number
This is where most advisors get surprised. An offer is rarely one number. It’s a mix of upfront value, earnouts, growth payments and, in many cases, equity in the acquiring firm.
Across representative offers we’ve seen recently, projected total value ranged from about 6x to 17x practice revenue. Full acquisitions landed near 6–7x, while 10-year sell-and-stay partnerships reached roughly 10–14x. But the higher totals arrive later and depend on future growth and the future value of the equity you receive.
So the real questions are: When do you get paid? How much depends on performance after closing? And how confident are you in the firm whose equity you’re holding?
4. Consider the market you’re selling into
The market remains active, but it’s changing. According to DeVoe & Company, RIA deal announcements slowed 19% in the third quarter of 2026, as owners postponed decisions rather than abandoned them. Buyers say they prefer larger firms, yet 42% of their first-half deals involved firms under $500 million, so smaller practices remain very much in demand.
Meanwhile, Cerulli reports that about 35% of advisors expect to retire within the next decade, and more than a quarter of them aren’t sure what their succession plan is. When delayed sellers return, preparation will set practices apart.
5. Get a number, then compare paths
A useful valuation doesn’t stop at “here’s what it’s worth.” It should show what each realistic path would deliver for you, your clients and your team, side by side and over time.
That’s the work we do every day at Succession Point. If you’d like to see how real offers compare, our recent valuations and offers are here: successionpoint.com/recent-valuations-offers/
And if you’re ready to find out what your practice could command today, I’d welcome a confidential conversation.