What's My Practice Worth? Get Beyond the Rules of Thumb
Revenue multiples and EBITDA benchmarks give you a starting point, not a final answer. What your practice is actually worth depends on who's competing for it and how much they want what you've built. Alaris helps you find that number.
With $2B+ in closed seller proceeds and 100+ completed transactions, Alaris has the real transaction data to benchmark what your practice is worth, not just what the averages say.
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The Multiple Is a Floor. Buyer Conviction Sets the Ceiling.
What's My Practice Worth: Why the Answer Isn't a Formula
Most advisors anchor on multiples: 2-7x revenue, 8-12x EBITDA. Those set a useful floor. The ceiling is determined by how much the right buyer wants your specific practice.
Broad sell-side processes surface price early, fit later. The best buyers, those who pay most from genuine conviction, often get screened out before they understand what they're acquiring.
Alaris inverts that sequence. What you need is defined through the Ideal Outcome phase before any buyer is introduced. Genuinely aligned buyers then compete, and they bid harder because they see a partnership, not just an asset.
What's My Practice Worth: Four Factors Buyers Weigh
Understanding how buyers calculate value lets you strengthen the right variables before a process begins.
Revenue Quality
Fee-based recurring revenue commands the strongest multiples. Buyers pay a premium for predictable income tied to long-term client relationships rather than transaction-based or one-time revenue.
Client Retention and Demographics
Stable, long-tenured client relationships signal a durable practice. Client age, concentration risk, and documented retention rates all affect how buyers model your future revenue.
Operational Independence
A practice that can run without its founder commands a higher multiple. Documented workflows, a capable team, and systematized client management shift the valuation from a book to a firm.
Growth Trajectory
Buyers price growth into offers. Organic AUM and revenue growth, net new client acquisition, and a replicable growth model all support a stronger multiple than AUM size alone.
These factors set the floor. Competitive buyer dynamics, driven by genuine fit, are what push your practice above market average.
What's My Practice Worth Beyond the Benchmark
Industry benchmarks put the median EBITDA multiple at 11.0x in 2024, up 37.5% from 2020's 8.0x. That is the market average. Practices with the right buyers competing can exceed it.
Industry research shows advocated sales have outperformed private deals by 6.91% in multiple and produced 75% cash down versus 61%. Process design is a direct input into what your practice is worth.
Alaris has closed 100+ transactions representing $2B+ in seller proceeds. Our results reflect what happens when the right buyers compete for practices they genuinely want to win.
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Why Buyer Competition Determines What's My Practice Worth
What the Data Sets as Average
Industry benchmarks place revenue multiples from 2.0x to 4.0x depending on revenue quality. EBITDA multiples run 8x to 15x. These are averages, not ceilings. The ceiling is competition among buyers who want what you've built.
How Alaris Creates That Competition
Alaris uses the Lens platform to catalog 80+ buyers across 50+ data points before any introduction. Buyers invest 30 to 50 hours in onboarding before bidding begins. That depth produces conviction. Conviction makes buyers bid above the market average.
The Result for Sellers
Buyers who see genuine alignment fight harder to win. They see a partnership, not an asset. That conviction produces stronger multiples, better cash at closing, and cleaner post-close outcomes. Zero break-ups across 100+ Alaris transactions reflects it.
What's My Practice Worth: Common Questions
Revenue multiples often range from 2.0x to 7.0x of trailing 12-month recurring revenue. The multiple varies based on revenue quality and client retention. This gives you a starting benchmark, not a final number.
EBITDA multiples for RIA firms typically range from 8x to 15x, with industry benchmarks placing the 2024 median at 11.0x, up 37.5% from 2020. Firms with strong margins, recurring revenue, and operational independence from the founder tend toward the higher end.
The primary drivers are recurring revenue percentage, client retention, operational independence from the founder, and growth trajectory. Buyer competition also materially affects final price: advocated sales can outperform private deals by nearly 7% in multiple.
Significantly. A practice that can only function with the founder is priced as a book of business, not a firm. Documented processes, a capable team, and institutionalized client relationships all raise the multiple by reducing perceived transition risk.
Substantially. Industry data shows advocated sales have outperformed private deals by 6.91% in multiple and produced 75% cash at closing versus 61%. How you run the process is a direct input into your final proceeds.
Not less than you'd expect. Most RIA transactions involve owners without formal succession plans. What matters to buyers is revenue quality, client transferability, and operational stability. Alaris has closed 100+ transactions for advisors in exactly this situation.
Alaris assesses your practice through the Getting Deal Ready phase, which includes a formal valuation benchmarked against real transaction data. The Lens platform then identifies which of 80+ buyers would be most likely to pay a premium for what you've built. See our results for the track record.