The Perfect RIA The Importance of De-risking Your Practice With Ted Jenkin
Sep 11, 2025
Ted Jenkin, a financial advisor and Fox News contributor, joins Matthew Jarvis to discuss the critical state of the financial advisory industry. They delve into the necessity of de-risking practices amid market fluctuations and the value of merging or selling portions of businesses. Ted emphasizes the importance of understanding market valuations and the potential for growth through strategic talent alignment. The conversation also addresses the upcoming retirement of seasoned advisors and the need for thoughtful succession planning.
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Gym Broker Shocked By Advisory Prices
- Matthew Jarvis told a gym story where a broker was shocked by advisory valuations compared to other service businesses.
- The broker said advisory deals at current prices seemed impossible based on his experience selling dry cleaners and contractors.
Current Multiples May Not Last
- High market multiples are cyclical and can compress once consolidation matures, reducing future offer levels.
- Acting now captures current liquidity and avoids future multiple compression risk.
Validate Payout Claims Against Profit
- Do not equate gross payout percentages from firms with actual owner profitability without reviewing your P&L.
- Validate promised payouts by mapping them to true net margin after payroll, rent, and owner compensation.