CPA & Accounting Firm Valuation Calculator
Ready to retire or merge your firm? Calculate the exact market value of your book of business.
M&A Outlook for Accounting & CPA Firms
Industry Insight: Accounting & CPA Firms
Accounting firm valuations are traditionally based on a multiple of gross revenue (often around 1x to 1.25x), but larger, highly profitable firms are increasingly valued on an EBITDA multiple. Firms that offer high-margin advisory and fractional CFO services command much higher multiples than those strictly doing seasonal tax prep.
Owner Dependency Kills Deals
Across all industries, including accounting & cpa firms, if the business cannot run without the owner present, it is considered highly risky. Private equity firms and corporate buyers will drastically reduce their offers (or walk away entirely) if you hold all the client relationships and operational knowledge.
Asset Sale vs. Stock Sale
When structuring a deal, buyers heavily prefer Asset Sales because they avoid the unknown legal liabilities of the past company and get to step-up the tax basis of the assets for depreciation. Sellers usually prefer Stock Sales because the proceeds are taxed at the much lower long-term capital gains rate. Prepare to negotiate this critical point during your transaction.