Financial planner valuations

At Lotus Amity we provide financial planner valuations. We provide those valuations in transactions, disputes and for tax purposes.

Like professional practices, financial planners often have little or no productive tangible asset base. What they do often have however is a book of business. This intangible asset can be potentially valued in its own right and this can be a key area of dispute, see Nettler and Nettler (2007).

Another potentially contentious component of value is the market salary for the owner operator; see court cases Corbon & Klousner (2015) and Scott & Scott (2006).

Key financial planner valuation components include the type of service, the number of clients, average fee per client, the average client period, client demographics, service manager details, salaries and commissions paid to staff and location and terms of the leased premises.

Examples of financial planner valuation engagements include the valuation of a firm of independent financial planners providing financial planning, wealth management, retirement planning, self-managed super funds and insurance advice, report provided for restructuring purposes, and the quantification of the lost alternative investment opportunities due to negligent advice provided by a financial planner; report prepared for the Federal Court WA.

Why choose Lotus Amity for legal practice valuations?

Granular and comprehensive approach. We provide a granular and comprehensive approach to valuation. This includes modelling cash flows and discount rates and providing fully referenced appendices.

Detailed analysis. Each valuation has a story. We carefully research, analyse and explain each valuation story and how the numbers (the cash flows and discount rate) relate to that story.

Compliance. Our reports comply with the Australian accounting, ethical and valuation standards, the International Valuation Standards and the relevant expert witness requirements.

Quality Control. Each valuation report and model is reviewed for accuracy, completeness and transparency by an external firm of Chartered Accountants and business valuation specialists