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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De-risk By Selling Part Of Your Practice
- Do sell some of your advisory practice to de-risk your largest asset when timing allows.
- Treat your practice like concentrated stock and take chips off the table rather than assuming 100% retention.
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.
Market Pays For Forward Earnings
- Advisory businesses often command much higher multiples than advisors expect because buyers pay for forward earnings and enterprise value.
- Advisors are trained to live off cash flow and therefore underappreciate the uplift from selling equity.