Net new asset growth is the most reliable indicator of sustainable advisory firm growth and enterprise value. Firms that build repeatable systems to generate new assets outperform those relying on markets and referrals.
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Most advisory firms are passengers when it comes to growth. They buckle in, look out the window, and hope the ride is smooth. When markets go up, they feel great; when they go down, they tighten their grip and wait it out. Referrals show up as a pleasant surprise, and when they slow, it becomes a source of quiet concern.
They’re just along for the ride.
The most successful advisory firms take a very different approach. They get in the driver’s seat. They decide where they’re going, how fast they want to get there, and what route they’re going to take.
When it comes to building a durable, valuable advisory business, the difference between being a passenger and being a driver shows up most clearly in one place: net new asset growth.
Most advisors think about growth primarily through two lenses: market performance and referrals. While both matter, neither represents true, intentional business growth.
Neither one puts your foot on the gas pedal. Net new asset growth does. When you generate new clients and assets consistently, you stop reacting to external conditions and start shaping your own trajectory.
That’s what separates firms that drift from firms that build.
In my conversations with investment bankers, industry leaders, and buyers and sellers of advisory firms, one theme comes up again and again: net new asset growth is now the single most important driver of enterprise value.
Here’s what I’ve been told when it comes to the reality of the “valuation gap”:
Same advisors. Same markets. Same clients. Just a different seat in the car.
This is why sophisticated buyers increasingly focus less on market-driven performance and more on how intentionally and systematically a firm generates new assets.
Most advisors don’t lack ambition, expertise, or opportunity. What they often lack is a repeatable system for:
Without systems, growth is episodic. With systems, growth becomes predictable. This is the moment many firms realize they’ve been sitting in the passenger seat, waiting for favorable conditions, instead of building an engine that allows them to control speed and direction.
The highest-performing advisors and firms we work with share a common mindset shift.
They stop asking: “How are markets and referrals treating us?”
And start asking: “How are we intentionally generating new opportunities?”
That shift changes everything. It moves growth from something that happens to them into something they design and execute. It turns optimism into planning. Hope into strategy. Chance into control.
None of this means abandoning referrals, client service, or investment excellence. Those remain foundational. But the firms that build enduring businesses support them with a proactive growth engine designed to consistently generate qualified new relationships.
At AcquireUp, our role is to help advisors and wealth platforms do exactly that. We combine targeted outreach, educational seminars, and advisor enablement to produce predictable, scalable net new asset growth. Not to replace what makes advisors great, but to amplify it.
Every advisory firm gets to choose where they sit.
The passenger seat is comfortable. You can enjoy the view, trust the road, and hope traffic cooperates. But firms that want to build something exceptional, something durable, resilient, and valuable… eventually decide to take the wheel.
They stop hoping for growth and start engineering it. And once you experience what it’s like to control the direction, speed, and destination of your business, it’s very hard to go back to being just along for the ride.
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Net new asset growth measures the assets an advisory firm gains from new and existing clients, excluding market appreciation. It reflects how effectively a firm generates new relationships and assets through intentional growth efforts.
Net new asset growth is a primary driver of advisory firm valuation because it shows predictable, repeatable growth. Firms with higher net new asset growth typically command significantly higher EBITDA multiples than firms relying on market performance or referrals.
Advisory firms increase net new asset growth by building repeatable systems for demand generation, trust-building, and client conversion. This includes proactive outreach, educational marketing, and advisor enablement rather than passive reliance on markets or referrals.
Market-driven growth comes from rising asset values due to market performance, which firms cannot control. Net new asset growth comes from intentionally acquiring new assets and clients, giving firms greater control over growth and long-term business value.
Systems make advisory firm growth predictable by standardizing how opportunities are created and converted. Firms with repeatable growth systems are better positioned to scale, withstand market volatility, and increase enterprise value over time.
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