What Is Roy's Appraisal Method?

To get a sense of Roy's method, go through this little exercise:

Imagine it is a Friday afternoon. After years of hard work, you’re ready to ride off into the retirement sunset. When Monday morning comes, will existing clients or prospective clients still contact your office and agree to work with your successor?

If your answer is “no,” your practice is probably worth little to nothing. If your answer is “yes,” you’ll need to ask two more questions.

  1. How much revenue do you think your successor will bring in during the first few years after the transition? Put another way, how much predictable future revenue will there be?
  2. If you were still actively practicing and referred out all of that work, how much would you expect to receive in referral fees?