Importance of Online Marketing for Businesses
Digital marketing has become increasingly important in recent years, particularly for businesses that cater to the younger generations. But with the coronavirus outbreak having literally forced a large percentage of our population to stay-at-home (except for essential activities), even our older population has started to get used to interacting with businesses online. Those businesses that…
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Understanding Business Valuation
This is a trying time for business owners in many industries, and to add insult to injury, many of them have been unable to obtain access to the government assistance that was promised. This has left countless business owners wondering if they will ever be able to come back, and unfortunately, some have decided to…
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How to Keep Clients after Purchasing a CPA Practice
When someone buys an accounting practice, the major asset they are buying is the current book of business. Although there may be office furnishings, equipment, trained employees, and earned goodwill, the one thing out of all of these that is producing ongoing revenue is the client base. And for every client you lose, it will…
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Getting the Most for Your Accounting Practice
Accounting Practice and CPA Valuation vs Fair Market Value Every CPA and accounting practice for sale is different. In addition, each potential buyer of accounting practices enters the discussion with their own set of variables that hold importance in their business plan and to them personally. This is why the true definition of “Fair Market…
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How Much is My Business Worth
Most business owners reach a point when they want to move on to the next phase in their lives. At that point, the question “what is my business worth?” becomes of paramount importance. Even if they are not looking to sell right away, it is good to know the value when the time comes. Businesses…
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Important Considerations when Valuing a CPA Firm for Sale
Selling an accounting practice is a complex endeavor. The typical sales process will involve several steps over the course of multiple months before the transaction is completed. One of the most important factors in the success of a CPA practice sale is placing a proper value on the firm. If the price is too high,…
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CPA or Accounting Firm Valuation
When trying to find the worth of your business, remember there is no magic formula to “finding your accounting firm valuation in 5 minutes or less”. However, steps can be taken to help approximate the value of your business. Valuation of a business is derived from how much money your business will make in the…
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Why Large Accountancy Firms Carry Higher Valuation Multiples
I often get asked questions on valuation methodology for accountancy firms or CPA practices. There are many variables that get considered in a valuation, attrition averages, operating margins, cash flow margins, work quality, book demographics such as AGI, work complexity, and average age but the size of the firm (the gross recurring revenue) needs to…
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Accounting and CPA Practice Valuations
Most CPA’s and Accountants have a general understanding that accounting practices are valued at one-times gross revenue. While the “average” selling price for a practice is near one-times gross revenue this is only the average. Practices typically sell between .75 and 1.5 of gross revenue. In order to properly price a practice, a number of…
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