Episode #182
182: Inside a $2B AUM Exit: What Buyers Actually Pay For (SHP Financial)
A growing advisory firm and a valuable advisory firm aren't always the same thing. Plenty of founders know their AUM, revenue, and production. Far fewer know how an outside buyer would judge the business if they had to put a price on it tomorrow. SHP Financial went from less than $30 million in AUM around 2014 to roughly $2 billion AUM by the time they entered the acquisition process. But going through that process forced Derek, Michelle, and Keith to look at the business through a completely different lens. We talk about the things buyers cared about that they hadn't always measured, the founder dependencies that can quietly hurt enterprise value, why impressive growth numbers don't always tell the full story, and what SHP had built behind the scenes that made the firm attractive to an acquirer. If you're building an advisory firm you eventually want to sell, or simply want a business that can grow without depending on you, this conversation gives you a look at what the market actually values. 3 Insights From This Week's Episode #1.) Growth Doesn't Automatically Create Enterprise Value You can have significant AUM, strong production, and years of growth while still owning a business that's difficult for someone else to buy. We explore the questions an acquirer asks that many advisors don't start thinking about until much later. #2.) What Happens When The Founder Is The System? If sales, service, planning, and key client relationships still depend on you, your firm may be more fragile than it looks. SHP's acquisition experience revealed why the business behind the founder matters just as much as the founder's ability to produce. #3.) Are You Tracking The Wrong Growth Number? A big production year can look great on paper while hiding what's actually happening inside the business. Derek, Michelle, and Keith share how the acquisition process changed the way they look at growth—and why the scorecard buyers use may be different from yours. WANT TO LEARN WHAT ACTUALLY DRIVES VALUE FOR YOUR FIRM? Apply for a seat at The Table for a one-time, behind-the-scenes training with SHP Financial on the metrics, systems, and lessons that matter most when building a business that’s bigger than you. Apply now to reserve your spot: https://bradleyjohnson.com/182-the-table-with-shp/ SHOW NOTES https://bradleyjohnson.com/182 FOLLOW BRAD JOHNSON ON SOCIAL X Instagram LinkedIn FOLLOW DBDL ON SOCIAL: YouTube Twitter Instagram LinkedIn Facebook DISCLOSURE DBDL podcast episode conversations are intended to provide financial advisors with ideas, strategies, concepts and tools that could be incorporated into their business and their life. No statements made in the episode are offered as, and shall not constitute financial, investment, tax or legal advice. Financial professionals are responsible for ensuring implementation of anything discussed related to business is done so in accordance with any and all regulatory, compliance responsibilities and obligations. The Triad member statements reflect their own experience which may not be representative of all Triad Member experiences, and their appearances were not paid for. Triad Wealth Partners, LLC is an SEC Registered Investment Adviser. Please visit Triadwealthpartners.com for more information. Triad Wealth Partners, LLC and Triad Partners, LLC are affiliated companies.TP08265847628 See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info .
