KBS - Financial Services and Wealth Management - Market Insight

EBITDA MULTIPLE RANGES IN THE FINANCIAL SERVICES AND WEALTH MANAGEMENT SECTOR In the UK and global financial services and wealth management sector, EBITDA multiples for company sales typically range from 6x to 18x, depending on the firm’s assets under management (AUM), fee structure, client base and level of recurring revenue. Key valuation trends include: • Wealth Management & Investment Advisory Firms: Businesses managing investments for high-net-worth individuals (HNWIs) and institutions typically trade at 10x-18x multiples, with premium valuations for firms with long-term discretionary mandates.

• Independent Financial Advisers (IFAs): Smaller advisory firms tend to see 6x-12x multiples, with higher valuations for those with fee-based revenue models and strong client retention.

• Private Banking and Family Offices: Firms catering to ultra-high-net-worth clients (UHNWIs) command 12x-18x multiples, reflecting the exclusivity and stability of their client relationships.

• Asset & Fund Management Companies: Asset managers with significant AUM and strong investment performance can achieve 10x-16x multiples, depending on fund structure and investor composition.

• Fintech & Digital Wealth Platforms : Companies leveraging robo-advisers, AI-driven financial planning and digital wealth solutions often achieve 12x-20x multiples due to high scalability and investor interest in financial technology.

• Insurance & Financial Planning Firms: Companies specialising in life insurance, retirement planning and annuities typically see 7x-14x multiples, with recurring premiums and long-term contracts driving valuations.

UK wealth and asset management deals increased from 1 07 in 2023 to 122 in 2024, with the total publicly disclosed deal value rising substantially from £2.1bn in 2023 to £9.3bn in 2024.