Mark Hurley takes on Bob Veres in round two of the valuation debate

I’m passionate that the “diagnosis function” to which Hurley references falls under the 80/20 rule.

I believe 80% of a client’s diagnosis can be accomplished through scalable technology. Plug in a client’s AGI, net savings, household characteristics (e.g. number of children and ages), portfolio, and other data obtained in the intake process, and technology can generate a snapshot of the client’s greatest financial planning needs.

It’s the remaining 20%, the behavior about money, or money scripts in the life planning environment, that requires time-intensive processes.

Would all 25 clients who wish to sign on at once have complex money scripts? Or would the majority benefit from a turnkey intake->snapshot process, while the remaining minority would need counseling to correct dysfunctional money scripts?

Bill @ <a href="http://fppad.com" rel="nofollow">FPPad.com</a>

Hey, Brooke. Hope all is well. I have tried emailing certain articles to friends, and the email function does not appear to be working. When I hit Send, nothing happens. Are your tech people aware of this. My phone is 714-704-9180.

I don’t know many businesses from any industry where the owner is paid more for their business than if they held on to it. When one decides to sell a business, it’s usually not because they can get more money by selling than holding on. There are some exceptions to this rule, but it always happens when a buyer is not buying on either a strategic or financial basis. In those cases, owners hit the proverbial “jackpot”.

I also agree that wealth management firms only achieve enterprise value when they have over $2MM in sales and operate in a truly ensemble manner. The question for many in the wealth management/financial planning/investment management business is do they want to create a business that develops enterprise value. The answer to that in most cases seems to be no.

Josh Patrick
www.stage2planning.com/blog