Financial advice firm financial model, built free.
A three-statement Excel model for a financial advice firm, built from your own figures and checked to balance.
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We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more
Advice practice, private wealth firm, family office or licensee earning initial and ongoing advice fees, asset-based fees or retainers from clients, or licensee fees from authorised representatives, and often growing by buying client books.
In short
- 01
Three linked statements
Income statement, balance sheet and cash flow, linked in every period.
- 02
Valued three ways
Discounted cash flow, trading multiples and precedent transactions, side by side.
- 03
Monthly to annual
Monthly, quarterly, half-yearly or annual periods, for up to 30 years.
- 04
Checked every period
A Checks sheet shows the balance sheet balances and the cash reconciles.
The sample, as Excel draws it.
Built by the same system and checks as yours: its structure and its inputs, ready for your own figures.
The sample describes no real business. Yours is calibrated to your own figures, so its results are your business’s.
How the model works for a financial advice firm.
- How it earns revenue3 formulasAcquired client books, practices and brokerages · The businessClosing deferred considerationOpening deferred considerationDeferred consideration addedDeferred consideration paid (first period of the financial year)Acquired client books, practices and brokerages · The businessPayments for businesses boughtPaid at completionDeferred consideration paid (first period of the financial year)Acquired client books, practices and brokerages · The businessRevenue from businesses boughtOpening revenue run-rate of businesses bought (a year)Closing revenue run-rate of businesses bought (a year)share of the year
- What drives its costs3 formulasOperating expenses · The businessTotal FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administrationOperating expenses · The businessTotal average FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administrationOperating expenses · The businessTotal staff costsSalariesOn-costsOther costs per FTE
- What it invests in3 formulasCorporate fixed assetsCapital expenditureRevenuefrom statementsCapex as % of revenueAdditional planned capexCorporate fixed assetsDepreciationDepreciation of the opening asset baseDepreciation of new capexCorporate fixed assetsClosing net book valueOpening net book valueCapital expenditureDepreciation
- How it is funded3 formulasDebtRepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweepDebtClosing balanceOpening balanceDrawdownsRepaymentsDebtInterest expenseOpening balanceAll-in interest rateshare of the year
- How profit becomes cash3 formulasWorking capitalTrade receivablesRevenuefrom statementsDebtor daysDays in periodWorking capitalInventoryDirect costs (positive)from statementsInventory daysDays in periodWorking capitalTrade payablesCash operating costs (positive)from statementsCreditor daysDays in period
20 parts, each one tested.
Every part is a tested building block with its own checks: yours is put together from the ones your business needs.
- CPI forecastConsensus curve with long-run anchor
- Operating expensesHeadcount build by function
- Corporate costsFixed cost base indexed to CPI
- Working capitalFull working capital
- Income taxCorporate rate with tax losses
- Corporate fixed assetsStraight-line over remaining life
- DebtAmortising term loan
- Equity raisingDistribution reinvestment plan
- Dividends and distributionsPayout of net profit
- Discounted cash flow valuationDCF on free cash flow to the firm
- Multiples valuationEV / EBITDA multiple
- Acquired client books, practices and brokeragesAcquired EBITA × multipleRoll-up acquisitions of advice client books, insurance brokerages, mortgage broking businesses and investment mandates — consideration, retained revenue, customer intangibles and their amortisation, and deferred payments.
- Advice revenueFamily office retainers and project feesFees earned by financial advisers and licensees for initial and ongoing advice.
- Licence capital and liquidity requirements (non-banks)NTA and liquidity requirementMinimum capital, net tangible assets and liquid funds required of licensed non-bank firms, and the surplus available for dividends.
- LeasesLease register
- Compensation ratio, bonus pools and deferred awardsFixed pay plus a bonus poolFixed pay, variable bonus pools, adviser or producer payouts and deferred awards for revenue-generating financial businesses, where compensation is the largest cost and flexes with revenue.
- Key-metric summaryLast-twelve-month and run-rate metrics
- Case selectionStackable stress toggles
- Precedent transactionsTransaction EV / LTM EBITDA
- Enterprise value to equity bridgeNet debt at the valuation date
The numbers it tracks.
- 01advisers
- 02clients
- 03revenue per adviser
- 04average fee per client
- 05recurring revenue share
- 06EBITDA margin
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Looking for a financial advice firm financial model template? Ours arrives built for your business, with your figures in it.
See a finished model, sheet by sheetThe sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.