Organic growth: why sustainable expansion is driving firms’ valuations  

Why buyers are prioritising internal momentum 

Valuation models have evolved.  

While earnings before interest, taxes, depreciation and amortisation (EBITDA) remain the foundation, the multiple applied to those earnings is increasingly influenced by the quality of growth. 

In a market where mergers and acquisitions (M&A) have long dominated the growth conversation, a more sustainable strategy is taking centre stage: organic growth. 

As Gladstone Associates puts it, “Where overall growth was sufficient to garner a higher multiple, now buyers desire true organic growth (net new assets exclusive of market lift) to justify a higher multiple.” 

In fact, Mercer Capital reports that each percentage point of organic growth can add between 0.5x and 1.0x to your EBITDA multiple. That means a firm growing at 12% organically could be worth more than twice as much as a firm with flat internal growth. 

Organic vs inorganic: What’s the difference? 

• Organic growth is driven by your own efforts, for example, winning new clients and improving retention. 

• Inorganic growth originates from external sources, such as the acquisition of another firm or a merger with a competitor. 

While M&A can offer speed and scale, it often comes with integration challenges, cultural mismatches, and unpredictable returns.  

Organic growth, on the other hand, signals stability, sustainability, and strong client relationships, all of which are highly attractive to buyers. 

According to NextWealth’s 2024 benchmark report, 68% of firms plan to grow by taking on new clients, while only 10% are pursuing acquisitions.  

4 strategies to improve organic growth 

Despite its value, organic growth remains underutilised.  

Many firms default to acquisition because it feels faster and more tangible. However, the reality is that organic growth, although slower, can be more profitable and sustainable. 

Here are four proven strategies to help your firm grow from within: 

1. Tap into the power of referrals 

Referrals remain the top source of new business for advice firms. According to The Ensemble Practice and BlackRock, they account for 58% of new leads. 

To make the most of this channel: 

• Create a formal referral programme 

• Incentivise existing clients to recommend your services 

• Track and optimise your referral pipeline 

Referrals convert at a much higher rate than other lead sources, but they can be unpredictable. That’s why they should be part of a broader strategy. 

2. Invest in digital advertising 

The UK’s digital ad market hit £29.6 billion in 2023, making it one of the largest globally, according to Statista.  

With more people online than ever, digital advertising is a powerful way to reach new audiences. 

To succeed, you’ll need: 

• High-quality creative tailored to your audience 

• Expertise in platforms like Google Ads and Meta 

• A clear strategy for targeting and retargeting 

While costs can fluctuate due to bidding models, modern ad tech makes it easier to optimise spend and measure return on investment (ROI). 

3. Build visibility through content marketing 

Today’s clients do their own research. That means your firm needs to show up where they’re looking online. 

Content marketing helps you: 

• Build trust and credibility 

• Improve your search engine rankings 

• Educate potential clients on your services 

Focus on creating helpful, relevant content around your firm’s specialisms. Blog posts, guides, videos, and FAQs can all help attract and convert leads over time. 

4. Use a lead generation platform 

If you want to grow quickly without stretching your internal team, a lead generation platform is a smart move. 

They can connect you with people actively seeking financial advice. A premium platform will also offer tools to help you: 

• Manage your pipeline 

• Track performance 

• Improve conversion rates 

This is a scalable, repeatable strategy that delivers consistent results without the unpredictability of referrals or the overhead of M&A. 

Why this matters for your firm’s valuation 

Organic growth isn’t just about getting more clients; it’s about building a better business. 

Firms that grow organically: 

• Command higher valuations 

• Attract more interest from buyers 

• Enjoy stronger, more sustainable revenue 

Ready to grow your firm organically? 

Unbiased is a financial advisory platform that empowers individuals to make confident financial decisions. 

For UK advice firms, we deliver exclusive, high-intent enquiries straight to your inbox. Every lead is thoroughly verified and validated, allowing you to focus on what you do best: providing expert financial advice. 

Our platform also gives you the tools to manage your pipeline, track performance, and convert leads. 

Book a free demo today and discover how Unbiased can help you: 

• Attract more high-quality leads 

• Convert more enquiries into clients 

• Build long-term, sustainable growth