The Perfect RIA Unlocking the Secrets of Practice Valuation With Scott DiGiammarino [Episode 333]
7 snips
Nov 3, 2025 In this engaging conversation, Scott DiGiammarino, an M&A advisor at JPTD Partners, shares his wealth of knowledge on practice valuation for financial advisors. He dives into current market trends and emphasizes the importance of structured sales processes. Scott details how to match sellers with the right buyers and the crucial steps in due diligence. He candidly discusses the emotional challenges faced by sellers and the potential pitfalls of self-representation, highlighting why having a broker can safeguard value during negotiations.
AI Snips
Chapters
Transcript
Episode notes
Current Valuation Multiples And Deal Structure
- Practice valuations currently range widely, often 4–7x top-line and 8–16x EBITDA, with some deals exceeding 8x top-line.
- Typical deals pay 60–70% up front and use earnouts tied to revenue retention and CAGR targets.
Define Fit Before You Shop Your Practice
- Do a deep fit analysis: answer 20–30 questions and rank must-haves versus nice-to-haves before shopping your practice.
- Use that wish list to target the top 5–7 buyers most likely to create the right post-deal outcome.
How JPTD Matches Sellers To Buyers
- JPTD asks sellers whether they want to keep their brand, manage money, or receive marketing and recruiting support.
- They then craft a one-page executive summary and send it to targeted buyers to start meetings within a week.