From a valuation perspective, which of these two advisory firms do you think could command the higher number in the sale of the business?
- Advisory Firm A: $50 million in AUM, annual gross revenue of $500,000 (with a 1% fee), annual profit of $100,000 (20% profit margin)
- Advisory Firm B: $100 million in AUM, annual gross revenue of $700,000 (with a 70-basis-point fee), annual profit of $70,000 (10% profit margin)
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