fabe Launches Wealth Management Industry’s First End-to-End Data Driven Process to Accurately Valuate Advisory Firms
Data Analysis-Centered Technology Challenges Traditional Discounted Future Earnings Valuation Models
KISCO, NY — fabe, a premier provider of valuation technology to the wealth management industry, announced today the launch of its software-as-a-service (SaaS) application.
fabe’s process is specifically designed to help full service firms and independent financial advisors extract maximum value from acquisitions and sales of their business. The software implements qualitative and quantitative analysis to separate core high-value and non-core low-value relationships and determine their impact on the overall valuation of an advisory business.
fabe’s voice-interactive capability and question sequencing facilitates and expedites the collection of client discovery data. The technology calculates and displays more than a dozen profitability, productivity and client ratios of similar size firms for comparative analysis, in conjunction with Income Statement, Balance Sheet, and Cash Flow analysis. Non-reoccurring income and expense adjustments are also made for evaluation accuracy.
“Whether it’s a full-service firm seeking to maintain a competitive posture for high valued recruits or an independent advisor selling their wealth management practice, attaining comprehensive business valuation is a key concern,” stated Andrew Grillo, Founder, fabe.
“Way too often transactions are inaccurately priced, as traditional valuation models rely heavily on current year’s multiples or discount rates, failing to incorporate the true value of the client relationships that comprise a book of business.”
“Our technology analyzes in full anonymity every critical aspect of a client relationship by utilizing proprietary algorithms and weighted scores based on client specific metrics,” Grillo continued. “Household relationships are appraised in a qualitative and quantitative fashion using commonly accepted best practices categories. A complete business valuation is generated in a dedicated dashboard, as a weighted aggregation of each relationship, and presented in quintile ranked categories for complete business value consideration.”
“Our unique valuation benchmarks, disruptive technology and end-to-end data-driven process were conceived by a cadre of highly-experienced veterans of the wealth management industry to meet and address a central problem: assess the real value of an advisory business,” said Claudio Pannunzio, Corporate & Marketing Strategist, fabe. “We have a straightforward mission, to become the industry’s go-to source to determine the most accurate valuation of financial advisory businesses.”
fabe’s implements patent protected question sequencing and voice recognition protocol that accelerate the data collection process. Questions were strategically conceived to highlight Responses For Attention (RFA) and identify growth and financial planning opportunities categorized as Responses Of Interest (ROI).
“As a veteran of the business and recruiting in general, I clearly recognize the need for a service process like fabe. The valuation metrics around both acquisition and sales in our business can often be both complex and misappropriated without professional guidance,” said Christopher L. Miller of CLM Ventura Financial Services Consultation and Recruiting. “fabe offers a simple turnkey approach to the sale-acquisition valuation process. Most important, it provides accountability for the client to determine how both an acquisition structure for a buyer should look and how a seller can best market and value their business.”
“The founding team at fabe consists of exemplary industry veterans, most of whom I have known or affiliated with during my career, so joint venturing with them to launch this service was an easy decision!” Miller added.
Bevin Crodian, PhD, CEO of FINCastle Consulting, a firm that specializes in finding transformative cost-efficient solutions for middle, back and front office investment product processing, stated “fabe’s application will provide the industry with an accurate business valuation that could be a game changer”.
fabe provides wirehouses and independent financial advisors with comprehensive business valuations that offer valuable insight on top-tier client relationships. Our proprietary technology measures the true value of client relationships and generates actionable business data instrumental to make high-confidence, informed business decisions. More information at www.fabeassist.com
Tel.: (203) 243-7679