Enter figures for a trailing 12-month period. It's fully circular: change the total and the three categories rescale proportionally to match; change any category and the total updates to reflect it.
Fee-based share of fee + trail revenue. Non-recurring commissionable revenue is intentionally excluded — many buyers give little to no credit for first-year commissions.
Excludes any owner/advisor compensation — that's captured separately in the next step. It's fully circular: change the total and the three categories rescale proportionally to match; change any category and the total updates to reflect it.
Owner pay is really two things: what it costs to replace you as an advisor, and what's left over as a return on owning the business.
Total revenue, less operating expenses, less fair-market advisor compensation.
Net New Assets (NNA) measures organic growth only — it is not impacted by market appreciation or depreciation. It's strictly new assets brought in from new and existing clients, minus withdrawals and assets lost when clients leave the practice.
NNA = (New Client Assets + Additional Deposits from Existing Clients) − (Withdrawals + Assets Lost to Departing Clients), expressed as a % of beginning AUM over the trailing 12 months.
Multiple adjustment based on NNA:
Drag to see how the multiple applied to EBITDA changes total value. Ranges are illustrative — plug in your own once you have a comp set.
This calculator gives a rough, directional estimate for planning purposes only. It is not a formal valuation, appraisal, fairness opinion, or offer of terms, and should not be used for financing, litigation, divorce, estate or gift tax, or other purposes that require a credentialed valuation. Actual practice value depends on many deal- and firm-specific factors this tool does not capture — client demographics and concentration, growth trajectory, succession bench strength, technology and compliance infrastructure, buyer type (strategic, financial, or internal succession), and negotiated deal terms, among others.
Total Compensation, owner comp, and EBITDA are simplified here. Total Compensation (revenue minus operating expenses) is split via a single advisor-compensation rate (25% of revenue by default, adjustable from 10%–35%) into two pieces: pay for being an advisor and pay for owning the business — the latter is, by definition, the same number as EBITDA in this tool. A full recasting/normalization of EBITDA in an actual transaction typically involves additional add-backs and adjustments — one-time or non-recurring expenses, related-party transactions, discretionary spending, and other normalizations — that aren't reflected here. The default operating expense percentages (10% platform, 13% employee, 4% other, as a share of revenue) are placeholder averages, not derived from a specific data set or from your practice — every one of these figures, expenses and the advisor-compensation rate alike, is meant to be replaced with your own actual numbers.
The EBITDA multiple ranges shown by EBITDA tier are illustrative placeholders, not derived from live market transaction data or a current comparable-sale analysis. A single multiple also oversimplifies real valuation practice, which typically triangulates across multiple methodologies (market/comparable transactions, discounted cash flow, and others) rather than relying on one multiple alone.
The Net New Assets multiple adjustment (the +/- bands tied to organic growth) is an illustrative, generalized assumption about how growth affects buyer appetite — it is not derived from empirical transaction data, and actual underwriting of organic growth varies significantly by buyer.
The after-tax value estimate reflects federal long-term capital gains tax only. It does not include state capital gains tax, the 3.8% Net Investment Income Tax, or the significant impact of actual deal structure — cash at close vs. seller notes, earn-outs, equity rollover, non-compete or consulting payment allocations, and working capital adjustments can all materially change both the amount and the character (capital gain vs. ordinary income) of proceeds, and are not modeled here.
Bridgemark Strategies is not a broker-dealer, RIA, law firm, or accounting firm, and this tool does not constitute investment, legal, tax, valuation, or accounting advice. Figures and ranges shown are illustrative starting points only — work with Bridgemark Strategies or a qualified, credentialed valuation professional for an actual assessment of your practice.