Advisors also need to evaluate their client base, segment which ones are most profitable for the firm, and design appropriate service models so they serve each segment profitably, said Schoenbeck. He said they should try to increase fee-based, recurring revenue and reduce transaction-oriented, commission-based revenue.

There should also be a system to track valuation metrics such as revenue per professional, and per-client assets and expenses. "There should be positive patterns over time showing the increase in firm value, said Schoenbeck. "If advisers can demonstrate that increase to potential buyers, they'll be much more likely to command a higher valuation when the day comes."


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