Case Study #6 – Valuation of Wealth Management Firm

Company X (company details removed for privacy purposes)

InteleK was engaged by the owner of a wealth management company to determine a reasonable valuation range for a minority stake in the company and facilitate negotiations among shareholders. With over 20 years of experience in the field, the owner had built a strong reputation and established close relationships with clients.

Several key elements were relevant in this engagement:

To address these unique challenges, we enhanced our standard valuation framework and tailored it specifically to the circumstances of the wealth management company, distinguishing our approach from generic solutions offered by other valuation practitioners. Our methodology included the following considerations:

By understanding the nature of the industry and addressing specific risks faced by the business, we provided a tailored and highly defensible valuation range. This valuation range served as a valuable guide during negotiations among shareholders, assisting them in reaching an agreement based on sound financial analysis and industry expertise.