In this episode, Jeff, Ted, and Scott discuss:

• Understanding valuation metrics and the significance of recurring revenue and organic AUM growth.
• The pitfalls of DIY approaches.
• The importance of cultural fit and why it matters more than money alone.
• The potential for minority transactions.

Key Takeaways:

• 60% of our clients have taken less money because it's a better cultural and environmental fit not only for themselves but for their staff and their clients. Fit is just more important when it's aligned than just getting the bigger paycheck.
• Most of the firms that we work with will want the advisor to have some sort of skin in the game from an equity perspective
• Founding shareholders are never going to be able to monetize at the same multiples with internal stakeholders as they can with external stakeholders. It’s a balance between taking care of the loyal people versus having a good outcome for them and their families.
• Most people don't know how to run the numbers, especially over a three to five-year period, to show that true trajectory and that hockey stick growth.
• As an advisor, you need to look at your goals, not just those for your clients.

"It's silly to go at it by yourself, because you're highly inexperienced, not as an advisor, but highly inexperienced as a deal negotiator." — Ted Jenkin

Connect with Ted Jenkin & Scott DiGiammarino:

Website: https://www.jptdpartners.com/

Ted’s LinkedIn: https://www.linkedin.com/in/theceoadvisor/

Scott’s LinkedIn: https://www.linkedin.com/in/scottdigiammarino/

Connect with Jeffrey Concepcion:

Website: https://www.stratoswealthpartners.com

Contact: https://www.stratoswealthpartners.com/contact

Twitter: https://twitter.com/Stratos_Wealth

Facebook: https://www.facebook.com/stratoswealthpartners

LinkedIn: https://www.linkedin.com/in/jeffconcepcion1/