Accounting Practice and CPA Firm Valuation Multiples Update for 2024
It will be a busy year this year for Mergers and Acquisitions in the accounting practice and CPA firm space. The baby boomers are exiting at a record pace, private equity, aggregators, and wealth management buyers are dominating the buyer pool and 2024 is the year that the greatest number of boomers turn sixty-five. While […]
How to Find a Buyer for Your Accounting Practice: Expert Tips for a Smooth Transition
Selling your accounting practice can be a big decision, and finding the right buyer is crucial to ensure a smooth transition and continued success for your clients. The process may seem daunting, but with the right approach and mindset, you can effectively position your practice for acquisition and find a buyer that aligns with your […]
The Essential Guide to Valuing Your CPA Firm or Accounting Practice (Firms up to $5mm)
“What is the fair market value of my firm?” is the largest question we receive when contacted by accounting and tax practitioners considering a sale. Taking firms to market over the last 15 years has given us an excellent understanding of demand, supply, and the algorithm that is used to value and sell firms. In this […]
Should You Sell Some Clients To Address Capacity Issues in the Accounting Industry?
Accounting firm principals typically consider partial sales to address three common capacity problems. The first is caused by the growth of new clients without an increase to the capacity of the firm. The firm can’t do all the work with the existing staff and the labor market is too tight to hire. The second is […]
How Can You Prepare To Sell Your CPA Firm in a Buyers Market?
For many years, the business sales and acquisitions market within the accounting industry has been controlled by sellers. There have consistently been myriad buyers vying for their share of a limited supply of firms, so intelligent buyers were required to make some reasonable concessions in the past. Recently though, there has been a shift in the […]
How to Ensure a Smooth Transaction When Selling Your CPA Practice
Owning a CPA practice is a very rewarding and lucrative career. However, at some point, it may be time for you to step aside. If this is the case, you need to start looking around for someone to buy you out. This process is full of potential pitfalls, but there are measures you need to […]
The Most Common Mistake When Selling Your Accounting Practice or CPA Firm
I get this question a lot from principals that are working through the process of exiting their accounting or CPA firm. There are many mistakes that can be made throughout the process, but I will discuss just one mistake that can impact your financial results significantly. Retention Is The Most Common Mistake The One Mistake […]
Selling Accounting Practices & CPA Firms in a Tight Labor Market
Selling Accounting Practices and CPA firms in a tight labor market have produced some interesting challenges. Labor shortages are not unique to the accounting practice industry, as the entire country is experiencing these difficulties. The search for credentialed and degreed staff is at an all-time high within the accounting industry, however, as it is hit with […]
Maximize Accounting Practice Sale through Transition Planning
Most sellers would prefer to receive all cash when selling an accounting firm. The problem is that most savvy buyers and certainly the best operators in the accounting field understand client retention risk. Buyers cannot truly understand the size or scope of the risk of retaining clients within a firm, so they hold back a […]
The Demand for Accounting Services
In today’s increasingly digital and mobile age, business trends are changing more rapidly than at any other time in history. Some services that appeared to be in a perpetual growth trajectory just a couple decades ago are now at or near the point of obsolescence. One prime example is the video rental business. The impact […]
