The company, which acts as a matchmaker and consultant on such deals, says the listings at its Web site run at about 35 buyers for each seller.

Consequently, the average asking price for advisory practices is about $680,000 (the median is $450,000), with average down payments amounting to about a third of the total, according to the report.

"Competition is strong from a field of highly qualified buyers," the report‚s authors write. The report also found that the value of practices rises with the percentage of revenues derived from fees. On average, the report‚s authors state, a firm‚s recurring fee revenues are worth 2.1 times that amount in the firm‚s valuation, while nonrecurring commission fees have a multiple of 1.1.

"Our research shows that fee-only firms command larger down payments and receive more inquiries per listing than either commission firms or fee-based firms," say the authors.

FPA Attacks Victimization Of GIs

Recent allegations of improper life insurance sales tactics suggest that financial advisors should be devoting some time recruiting clients who are in the military. A House panel has recently started hearings to investigate published reports that military personnel and their families–already under duress due to the wars in Iraq and Afghanistan–are increasingly falling victim to predatory life insurance sales tactics.

In testimony before the panel, Elizabeth Jetton, president of the Financial Planning Association, said one good counter to improper life insurance sales is a trained financial planner.

"The unscrupulous insurance salesman who has only life insurance to offer will try to solve every financial issue with an insurance product," Jetton says. "A financial planner, who must put the interests of the client ahead of his or her own, considers what investment tools are most appropriate given the financial constraints and priorities of the client."

The financial plight of military personnel has become a growing focus in the financial services industry, as more people in military service see their tours of duty extended. Among those most acutely impacted are reservists who have been away from their families and jobs for periods longer than they anticipated.

Illustrating the need is a recent agreement between the Military Officers Association of America and the Garrett Planning Network, which is devoted to serving middle-income clients. Among the provisions of the agreement, Garrett network advisors are giving 20% discounts off their fees for military personnel.

With or without a planner, Jetton says military personnel need to exercise caution. "With respect to any kind of life insurance product, there are some basic questions that a consumer needs to ask about the product, particularly since life insurance agents are not subject to a suitability standard in the sale of such products," she says.

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