The valuation in Wealth Firms isn’t just a number – it’s a strategy.
Everyone in independent wealth management has heard the benchmarks: 6–10x EBITDA, or 0.75–1.5% of Assets under Management (AuM). However, in real-world M&A, these figures are just the headline. The real story is told in adjustments – discounts or premiums – based on quality, not quantity.
🚫 Where value is lost
- Ageing client base 🔻: If most clients are 70+, and there’s no link to the next generation, a 20–30% discount isn’t unusual.
- Client concentration 🔻: One client driving 25–30% of revenue? It’s efficient until it isn’t – and buyers notice.
- Cross-border exposure without structure 🔻: Serving clients from emerging markets? Fine – but not without clear KYC, compliant onboarding, and transparent fund origins.
- Founder dependency 🔻: If the business is the founder, expect buyers to price in succession risk.
✅ Where value is created
- Recurring revenues >70% 🟢: Predictability is king.
- Operational scalability 🟢: Tech-enabled, cost-efficient models attract higher multiples.
- Structured international business 🟢: Global clients aren’t a risk if you manage them well, with process, transparency and regulation.
Why this matters
The Swiss wealth management market is heading towards consolidation with sophistication. Buyers are no longer just buying AuM – they’re buying systems, teams, compliance maturity and client longevity.
Understanding these valuation levers isn’t just for sellers. It’s strategic intelligence for anyone shaping a firm’s future—whether through acquisition, succession, or transformation.
💬 What’s the most overlooked value driver in our industry today?
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