Describe the best method of valuing a financial planning practice.

Question

Quizplus · Accepted Answer

The Answer is There really is no best method of valuing a practice. This is because it is often difficult to assess exactly what intrinsic value is associated with any given practice. Also, the risk factor associated with a transaction is always hard to determine. Finally, since each practice is unique, and the parties involved in a sale transaction come in all shapes and sizes, no standard transaction structure has been developed that lends itself to an uncritical use in all situations.

Describe the Best Method of Valuing a Financial Planning Practice