Encore Episode: Accelerating Your Growth and Understanding Practice Valuations with Guest Ted Jenkin
What You'll Learn In Today's Episode:
- Valuations and what the market will pay for a business are often misunderstood and can vary significantly.
- Factors such as culture, money management, and brand play a crucial role in valuations.
- Understanding the velocity of cash and stock growth is essential when considering a sale.
- Acquiring practices at a lower valuation and proving organic growth can lead to higher valuations.
- It’s important to consider the risks and benefits of a sale, including the impact on personal income and expenses.
In this encore episode, Matthew Jarvis sits down with industry veteran Ted Jenkin to demystify practice valuations for financial advisors. Ted shares the common misconceptions and the stark difference between a valuation and the actual market price a business can command. Ted also discusses his wisdom on the critical factors that shape practice valuations, including the oft-overlooked elements of culture, money management prowess, and brand equity. He also sheds light on the pivotal role of cash flow velocity and stock growth trajectories, elements that can make or break a potential sale.
Whether you’re a financial advisor contemplating an exit strategy or simply seeking to futureproof your practice for sustainable growth, this episode is an absolute must-listen.
