FSP valuation calculator
What is an advice practice worth?
For financial advisers and practice owners. Enter the last 12 months of revenue and ongoing costs, rate the quality of the business and see an indicative value range. Built with FI Consult.
All figures are for the previous 12 months, in South African rand. The result is only as reliable as the information you enter. Nothing you type is stored.
1. Revenue (previous 12 months)
R
All revenue received in the past 12 months from all sources, as per your accounts.
R
Revenue that repeats automatically: trail fees, ongoing advisory fees, management fees, retainers. Exclude once-off or transaction-linked income.
R
Revenue where you are the primary relationship and service provider. It drives the key-person assessment and the replacement cost.
Once-off or transaction revenueR 800 000
Revenue serviced by other advisorsR 2 000 000
Recurring share of revenue84%
Owner share of revenue60%
2. Business expenses (ongoing costs only)
Enter only costs that will continue under normal operations. Do not include the owner's own drawings or pay, and do not include once-off items.
R
All remuneration, commissions and benefits paid to other advisors and paraplanners who service clients. Exclude the owner's own drawings.
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Cost to company for support staff such as administrators, receptionists, compliance and operations staff. Exclude any family member whose role the business does not genuinely need.
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Office rent or bond repayments for the business premises, plus electricity, water, sewerage and refuse removal.
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Groceries, refreshments, cleaning products, sanitary supplies and general office consumables.
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Software licences, hardware, data, internet, cloud services and IT support or maintenance contracts.
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Landlines, cellphones, data bundles and other communication costs that the business genuinely needs.
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Fuel, insurance, maintenance and vehicle finance for vehicles used in the business. Include only the business-use portion.
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Client-related travel, accommodation and entertainment. Genuine business spending only.
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Broker platforms, financial planning tools, needs-analysis software, research and data subscriptions and industry association fees.
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Accounting and audit fees, bank charges, PI cover, FSCA-related compliance fees, legal fees on retainer and business insurance premiums.
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Paper, printing cartridges, branded stationery and related consumables.
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Advertising, digital marketing, client events, referral costs and other ongoing client-acquisition spending.
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Any other genuine ongoing business cost not covered above. Note what it is in your records for due diligence.
Total business expensesR 0
3. One-off costs (for reference)
R
System implementations, legal disputes, refurbishments, major equipment, non-recurring campaigns. Noted here only. They do not change the earnings below.
4. Replacement advisor
A buyer needs someone to service the clients the owner manages today. The suggested figure is 40% of the owner's managed revenue, a market proxy for a senior advisor's total cost to company.
Suggested replacement cost (40%)R 1 200 000
5. Net asset value (optional)
R
Book value of tangible assets that may transfer with the business. Shown separately from the earnings-based value for the buyer to include or exclude.
6. Quality assessment
Positive: clients averaging below 55, growing numbers, diversified ages. Neutral: stable, mixed profile. Negative: book averaging 60+, declining numbers, concentrated in retirees drawing down.
Positive: clean record, all requirements current, no sanctions. Neutral: minor historic issues, fully resolved. Negative: outstanding FSCA matters, sanctions or material gaps.
Positive: multi-advisor team, documented processes, modern CRM, not owner-dependent. Neutral: some structure but partly owner-reliant. Negative: owner-centric, no documentation, no CRM.
Positive: demonstrable growth from new clients or increased wallet share. Neutral: stable, no meaningful decline. Negative: declining revenue, client losses, or growth from market returns only.
years
Over 3 years adds 1.0. Between 2 and 3 years changes nothing. Under 2 years takes off 1.0. A longer commitment reduces transition risk for the buyer.
×
Leave at 5.0 unless market evidence supports a different starting point.
The indicated value
R 22 800 000
mid-point, earnings based (excluding NAV)
Low R 19 000 000High R 26 600 000
| Total revenue | R 5 000 000 |
| Business expenses (normalised) | R 0 |
| Replacement advisor cost | R 1 200 000 |
| Sustainable earnings | R 3 800 000 |
| Adjusted multiple | 6.0× |
How the multiple is built
| Starting multiple | 5.0× |
| Recurring revenue quality (84% recurring) | +0.5 |
| Key-person risk (60% owner revenue) | +0.5 |
| Client demographics and growth | +0.0 |
| FSCA compliance record | +0.0 |
| Operational infrastructure | +0.0 |
| Organic revenue growth | +0.0 |
| Owner transition period | +0.0 |
| Adjusted multiple | 6.0× |
Including net asset value
| Stated NAV | R 0 |
| Range low (including NAV) | R 19 000 000 |
| Range high (including NAV) | R 26 600 000 |
The buyer should confirm during due diligence which assets transfer with the business and adjust the price. One-off costs noted: R 0 (not included in earnings).
Disclaimer. This range is indicative only and is based solely on the information you enter. It has not been independently verified. The sustainable earnings figure reflects the cost structure and revenue profile as entered and should be confirmed through a full due diligence process before any transaction is concluded. This tool does not constitute a formal valuation, a fairness opinion or financial advice as defined under the Financial Advisory and Intermediary Services Act 37 of 2002. The output is only as reliable as the information provided. FI Consult accepts no liability for decisions made on the basis of this output without independent professional advice.
Financial education, not financial advice. Money-Sense does not recommend any product and nothing here is personalised advice. Results depend on the figures you enter and on assumptions that can change. Speak to an authorised financial services provider before you make a financial decision.